Land and buildings
In this lesson, you'll learn how VAT applies to land and buildings in advanced tax, building on what you already know from Taxation but focusing on exam-specific scenarios.
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In this lesson
- 0:00 VAT issues in advanced tax overview
- 0:25 Land and buildings VAT rates explained
- 1:27 Option to tax mechanism and benefits
- 2:30 Option to tax disadvantages and costs
- 3:09 Equip Pro case study worked example
- 4:18 Transfer of going concern principles
- 6:57 Gear Up Limited case study analysis
- 8:47 Optimising VAT position on business sales
About this lesson
You'll explore the three VAT ratings for buildings (standard rated, zero rated, and exempt), understand the option to tax and why sellers choose to waive exemption, and see how this affects stamp duty land tax and future transactions. You'll also discover how the transfer of a going concern works when buildings are involved, and why the option to tax status of those buildings can significantly change the VAT and stamp duty implications for the buyer. Through worked examples, you'll see how to identify when VAT applies to building sales and rentals, calculate the tax impact on purchasers, and advise on strategies to minimise tax when acquiring a business with buildings. This is a high-value exam topic that tests your ability to integrate VAT rules with other taxes and recognise the commercial decisions behind opting to tax.
Duration: 9m
Transcript
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