VAT: option to tax

HMRC has updated its guidance Changes to notifying an option to tax land and buildings during coronavirus (COVID-19) and VAT Notice 742A to reflect the end (on 31 July 2021) of the temporary extension to the time limit for notifying an option to tax.

Decisions to opt to tax land and buildings made on or after 1 August 2021 must be notified to HMRC within 30 days. This 30-day period had been temporarily extended to 90 days for decisions made between 15 February 2020 and 31 July 2021.

HMRC has confirmed that the temporary change to allow options to tax to be signed electronically has been made permanent.