End of the 90 day rule for notifying VAT options to tax

The temporary relaxation that was introduced by HMRC in response to COVID, extending the time limit for notifying HMRC of VAT options to tax property interests from 30 days to 90 days, ended on 31July. From 1 August, for an option to be valid, notification must be made within 30 days of the decision to opt.

In practice, this means that decisions to opt taken prior to 1 August still have 90 days to be notified, but, in normal circumstances, decisions to opt taken on or after 1 August have only 30 days to notify.

Anyone considering opting to tax property interests now, must be mindful of this change to prevent notifying their option late and rendering it invalid.

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