Opting to tax land and buildings (VAT Notice 742A)
What happens when you opt to tax (charge VAT on) land and buildings, when you need permission and when to notify HMRC about your decision.
Official website: gov.uk00
How to use the service
This section has force of law. An application for prior permission to opt to tax (for the purpose of paragraphs 28 and 29 of Schedule 10 to the Value Added Tax Act 1994) must be made on form VAT 1614H: application for permission to opt and must contain the information requested on that form.
Requirements
There are 2 stages in opting to tax. The first stage is making the decision to opt. This may take place at a board meeting or similar, or less formally. However you reach your decision, you should keep a written record, showing clear details of the land or buildings you are opting to tax, and the date you made your decision. If you have previously made exempt supplies of the land or building you may need our permission before you can opt to tax. Read section 5 to find out more. The second stage is to notify us of your decision in writing. Paragraph 4.2 explains how you should do this.
Processing time
You must keep your correspondence and any record of your decision to opt to tax for a minimum of 6 years. You should keep these records for longer than 6 years. An option to tax cannot normally be revoked until at least 20 years have passed — read section 8.
Official source
Opting to tax land and buildings (VAT Notice 742A)
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