Value Added Tax (VAT)

VAT may be payable on a property purchase and the funding of this should be considered.

The member must inform Yorsipp (Trustees) Limited to Opt to Tax (elect to waive exemption) before the completion of the purchase.  This must be done at the time of completing the property questionnaire or by a separate written instruction.

Yorsipp (Trustees) Limited does not take responsibility for the decision made to elect to waive exemption of VAT.  Independent tax advice should be sought to ensure the correct decision is made.

To reclaim VAT on the purchase and any subsequent costs the following will be required:

VAT invoice address to Yorsipp (Trustees) Limited, Unit 10, 18 Crowhill Road, Bishopbriggs, Glasgow, G64 1QY.  The invoice must include the invoicing company’s VAT registration number, the tax point and a breakdown of the net and VAT amounts.

VAT returns are made by Yorsipp (Trustees) Limited on a quarterly basis.

Transfer of a Going Concern

If a property has been elected to waive exemption for VAT and the current lease is continuing then the property may be classed as a Transfer of a Going Concern.  The member should note that a property can only be considered to be a going concern if Yorsipp (Trustees) Limited elects to waive exemption before the purchase of the property has completed.