VAT changes to property precedents

Property PSL documents have been updated where necessary to reflect changes to the option to tax introduced on June 1st by the Value Added Tax (Buildings and Land) Order 2008 (SI 2008/1146). These changes ensure that references are made to the option to tax, rather than an election to waive exemption, and that the drafting is sufficient to cover both ordinary options to tax made by a seller/landlord as well as the new real estate options to tax. The TOGC provision is also updated. This month’s CPI Update – see CPI Update – June 2008 – explains in detail the changes that have been made to the option to tax.