Property VAT Advice for Not for Profit Entities

The PEM VAT Services team provides VAT advice and assistance to many charities and non profit making organisations that are unable to recover much of the VAT incurred on property related expenditure.

We help such clients to minimise the VAT costs of construction work by the correct utilisation of the VAT reliefs that are available. This is a difficult and complex area but the PEM VAT Services team has helped clients to benefit from or avoid falling foul of the VAT rules.

The PEM VAT Services team are able to provide advice on how and when to apply the reliefs and the pitfalls to avoid. In some cases, it has proved possible to eliminate the VAT costs of certain building projects altogether.

We provide clients with consultancy advice on the VAT implications and contractual issues surrounding property investments. Similar scenarios can often result in markedly different VAT treatments. We advise clients on the most appropriate property rental arrangements and where necessary arrange for the rent to become taxable (under a valid option to tax) or ensure that it can remain exempt for VAT purposes.

We advise charity clients with property investment income to ensure that suitable VAT clauses are inserted into tenancy agreements to fully protect the charity’s position. Charitable tenants should always consider their VAT position because, in many scenarios, non profit making organisations can avoid paying VAT on rent.

For further information, advice or assistance contact Robert Plumbly, Head of PEM VAT Services on 01223 728222 or email rplumbly@pem.co.uk