VAT
The VAT position will need to be considered before the purchase of a property.. HMRC have confirmed that each member or group of members will be treated as a separate scheme and can be registered for VAT accordingly
If input tax is charged on the purchase price, and the tenant is either unconnected or connected with the client and fully VAT registered, IPM can normally register the scheme for VAT and recover the tax. However, VAT must then be charged on the rent.
If IPM registers the scheme for VAT, the registration must remain in force as long as the property is owned by IPM.
IPM is not a VAT expert and will not give any advice on this subject.. IPM would strongly advise that the members take professional advice before giving any instructions regarding VAT.
I.P.M. SIPP Administration Limited, Cintel House, Watton Road, Ware, Hertfordshire SG12 0AD Tel 0845 130 3443 Fax 0845 230 3443
email info@ipm-pensions.co.uk I.P.M. SIPP Administration Limited is authorised and regulated by the Financial Services Authority.
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