Value added tax - the impact of waiver of exemption on the English commercial property market

Booth, DN, 1998. Value added tax - the impact of waiver of exemption on the English commercial property market. MPhil, Nottingham Trent University.

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Abstract

The European Court judgement (case 416/85) would probably have added more than £1,000 million in Value Added Tax to the commercial property sector of the United Kingdom economy. The Government's response was to implement but mitigate the impact of this judgement by allowing taxpayers the opportunity to recover input tax (tax paid).

Early research based on investors' reactions to this option to tax indicated a low take-up rate, with investors opting only where there was a clear financial advantage to do so. This was a significant outcome because the Government relied on this mechanism to mitigate the impact of the European Court judgement (case 416/85). This suggested an opportunity to examine the effectiveness of the Governments chosen method of mitigation.

The Government was unable to prevent the European Court's requirement to extend value added tax affecting those individuals and companies who could recover only part or none of the tax. Commentators around the time of the judgement predicted a significant impact on rents associated with this sector of the commercial property market. This suggested an opportunity to examine the perceived effects on rents in this sector of the market.

The principal outcomes of the thesis are the results of a series of mail questionnaires developed from the key issues which examine the impact of waiver of exemption on the English commercial property market.

These show a variable but essentially low take-up rate of waiver of exemption and confirm the importance of the recovery of input tax as a key determinant in the decision to opt to tax. They also demonstrate that some exempt/part exempt tenants are willing to pay a premium or more rent to secure an unelected building.

Item Type:	Thesis
Creators:	Booth, D.N.
Date:	1998
ISBN:	9781369316902
Identifiers:	Number Type PQ10183526 Other
Divisions:	Schools > School of Architecture, Design and the Built Environment
Record created by:	Linda Sullivan
Date Added:	30 Sep 2020 14:58
Last Modified:	13 Sep 2023 15:16
URI:	https://irep.ntu.ac.uk/id/eprint/41042

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