This notice replaces the June 2008 edition of Notice 742A Opting to tax land and buildings and incorporates various VAT Information Sheets which have been withdrawn.
The notice has been revised and provides additional guidance on recent changes to the law. The main changes are:
- allowing 30 days in which to notify an exclusion of a new building from the effect of an option;
- changes to when a body corporate ceases to be a relevant associate;
- anti-avoidance provisions to prevent automatic revocation of an option to tax when taking out a real estate election or when a lapse of six years occurs since a relevant interest has been held in the opted property;
- changes to the conditions for revoking an option to tax within the six month 'cooling off' period;
- changes to the conditions for revoking an option to tax where more than 20 years have elapsed;
- changes to the time an option is revoked where prior permission is given by the Commissioners;
- an amendment to 'the connected persons' test;
- an updated definition of occupation for the purpose of the anti avoidance measures and a new 10% occupation rule;
- updated guidance on real estate elections; and
- defining when acquisition of a property takes place for the purpose of a real estate election
The revised notice can be found on the HMRC website