Option to tax ― real estate election (REE)

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note looks at real estate elections.

For an overview of the option to tax more broadly, see the Option to tax ― overview guidance note.

For in-depth commentary, see De Voil Indirect Tax Service V4.110Z.

What is a real estate election?

An REE is a formal decision made by a business that (with certain exceptions) it will be treated as having opted to tax every property in which it (or a member of its VAT group) subsequently acquires an interest.

An REE differs from what is known as a ‘global option to tax’. A global option applies to a large number of properties that are not specifically identified (for example ‘all current property holdings and future acquisitions’). A global option has a significant downside being that it cannot be revoked on a property-by-property basis. This is different to an REE where individual options can be revoked, subject to meeting the normal conditions for revocation. Although some global options still exist, it is no longer possible to opt to tax all

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Corporation Tax

Enterprise investment scheme tax relief

Enterprise investment scheme tax reliefOverview of EIS tax reliefsThe enterprise investment scheme (EIS) offers significant tax reliefs to encourage individuals to invest money in qualifying shares issued by qualifying unquoted companies. The scheme is designed to encourage investment in small,

14 Jul 2020 11:36 | Produced by Tolley Read more

Owner-Managed Businesses

Definition of a close company

Definition of a close companyThe detailed definition of a close company is set out below, but in summary the rules are targeted at those companies where the owners can manipulate the activities of the company to influence their own tax position. Therefore, broadly speaking, in most cases an

14 Jul 2020 11:24 | Produced by Tolley Read more

Trusts and Inheritance Tax

Holdover relief for disposals by trustees

Holdover relief for disposals by trusteesOverviewWhere a capital gain has been realised on an asset that has been disposed of and that disposal was not for full value (that is not in an arm’s length sale) then holdover relief may be available. This will happen when trustees appoint capital assets

14 Jul 2020 11:54 | Produced by Tolley Read more

��˾��ҹ��