Danton’s Death - or why you shouldn’t bet your life’s savings (just yet) on the Pfizer vaccine

Many moons ago when I was with my then very arty girlfriend, I got dragged along to a small theatre to watch a production of Danton’s Death, a play set during the Terror of the French Revolution.

Were we too harsh on Boris? No. Here’s why.

We respond to some of the debate yesterday's blog stirred up.

Businesses must get more vocal over lockdown

Winston Churchill once said: “Those who fail to learn from history are condemned to repeat it.”

It’s time to take out Tourism VAT for good

A permanent VAT cut for the tourism sector would boost one of the UK's most vital exports.

What will build-to-rent look like after COVID-19?

The pandemic has impacted all real estate sectors in some way or another - but which are going to come out stronger?

Commercial landlords should brace for more pain

The second rent quarter day of 2020 was dire but the third will likely be worse.

Budget 2020: what’s the outlook for real estate?

Blackstock Consulting's clients' share their analysis of what the new budget means for the property industry.

VAT on Homes Built to Rent

Yes tax is boring, but it’s important too, and despite what you may think it’s extremely important for the Build to Rent sector.

While we may be banging the drum on separate use classes or affordable housing methodology, perhaps we should turn more attention to how VAT is applied on homes for rent.

Homes sold on the open market are ‘zero rated’ and so pay no VAT. But If I rent you the flat, because it is an investment, I have to charge you VAT at 20% on the rent.

But you are not going to pay that, so I would have to make it VAT exempt, meaning I am unable to claim back my own VAT charges.

Given the majority of BTR developers are building new homes – rather than digesting those built for sale as buy-to-let investors do – Build to Rent investors should be treated differently, as far as VAT is concerned.

You can offset it through capital gains, but you cannot avoid it and it is a needless drag and a disincentive that may reduce likely investment into the sector.

As I said – it may not set the front pages alight or be the top recommendation of any white paper, but it’s important none the less.

man at desk reading about property pr