We have 2 clients who jointly purchased a commercial building in 2013 (co-owners) They registered for vat and self-accounted for vat on the purchase the property. They subsequently let the property to a company owned by individual A. Vat was charged on the rents. Individual A now wishes to buy out individual B’s share of the property. The property has not been developed since it was purchased. Individual A will continue to let the property to his company. In terms of VAT can transfer of business rules apply – let business with a letting agreement. I note that you cannot use transfer of business if you are selling to the tenant but really the company is the tenant and not Individual A. Or should we treat the sale as joint option to tax using vat reverse charge rules?
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