I am a residential landlord - can I register for VAT?

Question

I realise that I cannot charge VAT on residential rents, however does this prevent me from becoming VAT registered? I am self-employed and have spent a six figure sum on labour and materials so far this year and recouping the VAT would make a significant difference.

Answer 1

Unfortunately even if you could become VAT registered, you are making an exempt supply .i.e. residential property so therefore any VAT incurred in the provision of the exempt supply is blocked. Sorry its not the answer you were looking for.

However, if your self-employed, you can apply to voluntarily register for VAT purposes but again, any VAT reclaimed would have to be incurred in the provision of taxable supplies.  

Answer 2

If you telephone the VAT office they will advise you if you can voluntarily register and claim the VAT on your purchases.  One company I knew that did this and consequently always received money from the VAT office did have regular VAT inspections.