The Law Society has introduced new Solicitors Accounts Regulations 2023, which come into operation on 1 July 2023.
These regulations will impact solicitors, reporting accountants and Law Society investigations.
The existing Solicitors Accounts Regulations 2014 remain applicable for any accounting period that commenced before 1 July 2023.
Please visit the Law Society for information on the key updates.
Crowleys DFK are currently running a series of CPD accredited VAT on Property briefings for solicitors in Cork and Dublin. The purpose of the seminars, presented by Tax Partner Siobhán O’Hea, is to raise awareness of common VAT pitfalls on property transactions.
VAT on property can be a complicated area but it is vital to thoroughly investigate the potential VAT impact before embarking on any property transaction, Siobhán advises.
“We are seeing problems crop up in many different situations. For example, more people have got involved in letting property in recent years and this is an area where VAT issues can often arise. While lettings are exempt from VAT, landlords can opt to tax the letting and charge 23% VAT on the rent. This can be advantageous if the landlord wants to claim repayment of VAT incurred on the acquisition or development of the property, however it is important to be aware that there are restrictions. For example, you cannot opt to tax the letting if the property is occupied for residential purposes or occupied by the landlord or a person connected with the landlord.
“On sales of commercial property, liability to VAT depends on whether the property is considered ‘new’. There are Revenue rules governing the definition of ‘new’ for property VAT purposes. Generally, the supply of older properties is exempt from VAT however, in some circumstances, the vendor and purchaser may jointly opt to have the transaction subject to VAT.
“Where property is supplied in connection with an agreement to develop the property, these transactions are always taxable.
“In our experience, there are VAT pitfalls in many every day property transactions and these can prove very costly for clients. This is why Crowleys DFK are running these seminars for solicitors. It’s an opportunity to raise awareness and to help ensure common mistakes are avoided,” Siobhán concluded.
For further information on Crowleys DFK VAT briefings, please get in touch.
Talk to us
Siobhán O’Hea
Partner, Tax Services
siobhán.ohea@crowleysdfk.ie