We removed significant VAT costs on a complex SPV mixed use new build project in Birmingham.
The way the deal was structured was complicated by involving a sale and development management contract where, as often happens with property, the VAT treatment of the transactions did not mirror the actual money flows. Nevertheless there were large values of VAT potentially at risk which could have undermined the developer’s ultimate profitability. This was a complicated project that required careful analysis of who was doing what and how they were doing it. All key elements to working out what is happening and how VAT should apply.
By reviewing and finessing the contracts and other documents including recharge invoices that went to confirm the basis of the arrangements we were able to ensure there was no VAT leakage and prevented unnecessary costs.
Our role is to help you understand how the VAT exemption, 0% & 5% relief rules work for a particular situation and bear the lowest possible VAT costs. There are all sorts of VAT reliefs running through most sectors and you probably already know the rules relating to the property sector are both complicated and frequently misunderstood. So these grey areas are where we work and where we made a big difference.
If you’re ever not sure about VAT related then please give us a call. Remember sooner is always better.