Pravinggg

Dear Jay. Many thanks for prompt response. To make it simple, we are floating a VAT registered real estate company to buy the commercial property and will opt to tax. The real estate company will then lease the property to another new healthcare company which is not VAT registered. The lease plus VAT paid to the real estate company will be according to market rates and arms length transactions. Both the companies have same shareholders. Will this attract anti-avoidance rules ? due to connected persons ?

Company X is a healthcare concern and not VAT registered. Company X is planning to buy a commercial Property which is up for sale for 500,000 plus VAT. In order to reclaim the VAT, the plan is to form company Y and register for VAT. Company X will be loaning company Y to fund the purchase. After purchasing the property, company Y will lease the property to company X. Is this acceptable. Any other solutions you may have please.

I am buying a commercial property which is 500,000 plus VAT. I have a business (X) that is not VAT registered and do not intend to register for VAT. So I would like to float a new company ( Y) which will VAT registered. Company X will loan to company Y to fund the purchase. Can company Y reclaim the VAT paid for the purchase ? After the purchase company Y will lease the property to company X. Please advise