Will I pay VAT or Transfer Duty?
Property transactions will either attract VAT or Transfer Duty but never both.
Which you will pay depends on a few factors.
- Is the seller VAT registered?
- If Yes, then look at the top 4 possibities
- If No, look at the bottom 3.
- Is the property a residential dwelling or a commercial property
- That thins it down
- Is the buyer VAT registered?
- And that should get you the answer.
What is not in the diagram is the purchase of a business as an income earning going concern. That’s charged VAT at Zero Rate.
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