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Thanks again Trevor. What you say makes complete sense to me and I’m happy if this is the case. It does appear that the only change taking place is in the partnership and not in terms of the property and VAT. I have had a look online and I found one VAT legal advisory service where they offer exactly what you are talking about – they will give me a written statement in terms of my position with the VAT and the property but for this they want £600 plus VAT! They say it would be good to keep it on file in case of any future HMRC investigation. But I presume that if my undertading of the situation is, as you have said, then I will be in the clear and if I am not then I will be guilty of not following correct proceedures – which would be fair enough. So I wonder what difference it would make if I had a statement from a legal advisor or not? Or is the idea that I can then claim against the legal advisor? I kind of understand the element of peace of mind this might provide…I just wonder if there might be a legal advisor who might prepare this statement for me for a less than this?
Thanks for your reply Trevor. The building which is a mixed development was set up for VAT by the original developers/builders and my father when he bought it (the 2 ground floor commercial units with 8 flats above which pay ground rent) in 2011 he was told that he had to opt in for VAT. When my dad passed away in 2014, my brother and I inherited it and we also had to opt in for VAT and set up an account with HMRC as a partnership which was what HMRC advised us to do at the time. I recall phoning HMRC back then and explaining the situation and they told me that my brother and I will need to take over as partners in terms of VAT so we actually took over my dad’s acccount – our VAT number is the same as the one he had. So we collect VAT from the 2 tenants and pay it onto HMRC each year. Nothing with the tenants will change, only now I will be buying my brother’s half and instead the building will belong to myself and my wife. So I just want to know what the right thing to do is with regards to HMRC. Thanks
