Shaz talks us through a property he bought back in 2018 for £500,000 explaining the step by step process and the multiple tax savings he made during the purchase and development process.

Using this real world example provides a great opportunity to understand how to take advantage of all of the potential tax savings available because  together they add up to a substantial amount that impacts significantly

 

KEY TAKEAWAYS

• We had to go through planning because we didn’t have any permitted development rights
• With commercial conversions, it will always cost more and take longer
• So commercial property may have VAT on it but others may not
• If you are buying a property with VAT on it you will pay the stamp duty on the VAT element
• To not pay VAT you can do a transfer of a going concern
• You can complete a VAT 1614D, stating you are going to convert a commercial property into a residential property and if the vendor accepts it you won’t have to pay VAT
• You may be able to claim capital allowances when you are purchasing
• Make sure when the standard enquiries are made that there is a conversation with the vendor about capital allowances
• You may be able to claim land remuneration tax
• A charity using the property can mean no payment of business rates
• If you buy a residential property that’s been empty for 2 or more years you will pay 5% on the refurbishment costs

 

BEST MOMENTS

‘If you are buying a commercial property and converting it to residential you pay 5% VAT’

‘With most property projects there are one or two things you can do to save a whole load of change’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of

income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook

  LinkedIn

  Instagram

  YouTube.