Who should register for VAT?

Option to tax lettings

The letting of a property is exempt from Value-Added Tax (VAT). However, as a landlord you can opt to tax the letting of certain properties. The option to tax a letting can be limited to one property or particular properties if you own multiple properties.

If you opt to tax a letting, you will have to register for VAT and pay VAT on the rents from those properties.

You can not opt to tax the following:

  • a letting of residential property
  • a letting between connected persons, where the tenant has less than 90% deductibility.