Who should register for VAT?
Option to tax lettings
The letting of a property is exempt from Value-Added Tax (VAT). However, as a landlord you can opt to tax the letting of certain properties. But, if you own multiple properties you can limit the option to tax a letting to one property or specified properties.
If you opt to tax a letting, you will have to register and pay VAT on the rents from those properties.
You cannot opt to tax the following:
- A letting of residential property
- A letting between connected persons, where the tenant has less than 90% deductibility.