Option to tax ― what is covered by an option?

Produced by a

Value Added Tax

Guidance

This guidance note discusses what is covered by an option to tax. It also describes when supplies will not be affected by an option to tax.

For an overview of the option to tax more broadly, see the Option to tax ― overview guidance note.

For in-depth commentary on the legislation and case law around the option to tax, see De Voil Indirect Tax Service V4.115C.

What is the scope of an option to tax?

An option to tax has effect over the land or a building which is specified in the option.

When a person opts to tax a building, the option will continue to apply to the land on which the building stood if the building is demolished and any future buildings which are constructed on the land. In other words, the option has effect over the whole of the building (it is not possible to opt just part

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Wholly and exclusively

Wholly and exclusivelyFor both income tax and corporation tax purposes, one of the fundamental conditions that must be satisfied for an item of expenditure to be deductible, is that it must incurred ‘wholly and exclusively’ for the purposes of the trade, profession or vocation. References to CTA

14 Jul 2020 14:00 | Produced by Tolley Read more

Corporation Tax

FRS 102 ― tax presentation and disclosures

FRS 102 ― tax presentation and disclosuresPresentation of tax under FRS 102An entity must present changes in a current tax liability (or asset) and changes in a deferred tax liability (or asset) as a tax expense (or income) unless the item creating the current or deferred tax amount is recognised in

14 Jul 2020 11:46 | Produced by Tolley in association with Malcolm Greenbaum Read more

Value Added Tax

Supplies of goods and services connected with education

Supplies of goods and services connected with educationThis guidance note provides an overview of the VAT treatment of goods and services provided in connection with supplies of education. This should be read in conjunction with the following guidance notes:•Supplies of education•Local authority

14 Jul 2020 13:44 | Produced by Tolley Read more

��Ӱ��