HMRC COVID 19 response - more time to notify options to tax property interests
HMRC has temporarily extended the time limit from 30 days to 90 days from the date the decision to opt was made. This applies only to decisions to opt that are or have been made in the period from 15 February and 31 May 2020.
Notifications can be emailed to HMRC at firstname.lastname@example.org
Once an option to tax is taken, income arising from the opted property interest is subject to VAT at the standard rate (with some exceptions) and by deciding to opt, a business is better able to reclaim VAT incurred on costs attributable to the opted property.
This extension to the 30 day limit for notifying options to HMRC provides some welcome flexibility to businesses considering an option, and helps with any processing backlog that may have built up in HMRC.
Opting to tax property interests remains an important decision for any business and should not be taken lightly. I you would like to discuss any concerns about this measure or about VAT and property more generally, please contact your usual Centurion VAT advisor or if you prefer contact us at email@example.com.
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