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VAT – Reducing the cost to Registered Social Landlords (RSLs)
VAT is a significant cost for RSLs. Much of the VAT incurred on purchases is irrecoverable as it relates to VAT-exempt activities of renting affordable homes and in some cases providing care and welfare services. Many RSLs receive grant income which may furhte restrict VAT recovery.
In our experience the vast majority of RSLs can improve recovery, or reduce the VAT incurred with professional assistance. HMRC will not help you to do this! We set out below a number of system based and innovative solutions that you should consider to mitigate your VAT cost.
Property development and refurbishment
RSL development schemes can combine affordable rent, shared ownership, live/work, outright sales, commercial and community facilities.
The VAT issues are complex and the potential VAT costs significant. VAT may be incurred on land acquisition, and will be incurred on architects and other professional fees, and on works to commercial and community areas.
We can advise on:
- minimising VAT charged on construction/conversion costs
- recovery of VAT on costs and partial exemption methods
- VAT reliefs designed for charities and RSLs
- 'design-and-build' arrangements and potential VAT savings on professional services
We can also review projects retrospectively to identify VAT savings.
We all have experience in producing:
[Click here for our full RSL Brochure]
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