VAT Options to Tax

VAT Options to Tax

HMRC have announced that, from 1 February 2023,  they will no longer acknowledge option to tax notifications. The only form of acknowledgement will be the email response when an option to tax has been notified by email.

They also will no longer provide copies of acknowledgements where an option has been made in the previous 6 years. Requests relating to options over 6 years old will also only be answered in very limited circumstances.

Given the difficulties that arise when an opted property is sold and the Seller cannot provide evidence of the option to tax, I am advising that clients with opted properties review the documentation they hold and, where they do not have the acknowledgement of the option to tax, they submit a request to HMRC prior to the 1 February 2023 change of policy date.

Please contact VAT Partner Debra Dougal if you require any assistance with this.