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Post by Peter on Nov 6, 2003 18:13:06 GMT 1
Sorry! I'm a bit slow. I tend to leave my computer in the other list and sometimes miss this. Giles has already made a point that I was going to do when I started reading the thread. If you claim back the PDV(VAT) you will be obliged to charge it when you sell. Unless you are selling to another company, selling it to a private purchaser is going to mean an approximately 22% price hike. The score is: Built Pre 1997 no VAT Built after 1997 then 22% on the building valuation by the district valuer. Note that this is the building only. The value of the land is not included. Note also that whilst the valuation could differ from the purchase price, the district valuer will have gone on the building costs, not the market value. This may actually work in your favour. If the purchase is from a developer rather than the original builder, you may often find that he has already absorbed the PDV into the price and that no claimable PDV is identified. Note also, that if you enter the PDV(VAT)regime by registering, you will have an obligation to make regular returns, just as in the UK.
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Post by architect on Nov 6, 2003 18:41:33 GMT 1
If one assumes KPMG are correct. Read para 4.2 again it's pretty clear to me.
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Post by Peter on Nov 6, 2003 19:16:59 GMT 1
The KPMG document is now some 18mths old. We have certainly had district valuations. The purpose is almost certainly to reduce the number of people under invoicing and claiming to have sold something for less than a realistic value and pocketed the difference tax free.
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Post by Anja on Nov 7, 2003 2:15:32 GMT 1
Sorry! I'm a bit slow. I tend to leave my computer in the other list and sometimes miss this. Giles has already made a point that I was going to do when I started reading the thread. If you claim back the PDV(VAT) you will be obliged to charge it when you sell. Unless you are selling to another company, selling it to a private purchaser is going to mean an approximately 22% price hike. The score is: Built Pre 1997 no VAT Built after 1997 then 22% on the building valuation by the district valuer. Note that this is the building only. The value of the land is not included. Note also that whilst the valuation could differ from the purchase price, the district valuer will have gone on the building costs, not the market value. This may actually work in your favour. If the purchase is from a developer rather than the original builder, you may often find that he has already absorbed the PDV into the price and that no claimable PDV is identified. Note also, that if you enter the PDV(VAT)regime by registering, you will have an obligation to make regular returns, just as in the UK. Peter have you had any experience where the house was redeveloped form an old ruin to a completely new looking property and then sold. What aspect is deciding on a property when it's been classified as a new development and therefore liable for VAT? And is it again the local authority valuator who is deciding on the the value in this case?
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