English
FrançaisWe bought our leaseback back in 2003 - we were paid rent only once! for three months, we did however claim back the vat/tva, 15K.
The management company went bust. The complete complex was to be a residence of toursim, but the developer sold houses to be lived in around the year. We then put the property on the market - it eventually sold in July of 2008. Yes July 2008. In the meantime we've been paying our taxes and our French mortgage.
The problem now is that what happens to the vat/tva, it seems that our french accountant thinks we should refund the amount in full. We just have one problem after another with this and it really has been a nightmare.
Does anyone know what the situation is regarding the vat/tva, any help would be greatly received.
The selling agent knew that we had a leaseback originally, I don't know if the status was changed. How would we find that out.
The property has been empty and has not been used as a leaseback since the original company went bust. We would have been 6years into a 9yr contract had all been in order.
I did read somewhere though that the vat is based on a 20yr term and if sold you would repay the balance of the 20yr.
The new owner is living in the house year round.
By pro rata I assume you mean 14/20 of the vat, I thought that the new owner paid that portion once we had held the property for over 5yrs.
Also why would the accountant be looking for us to repay the vat in full?
Seamus
I would question your assumption that Mary has to repay the Vat rebate on a pro rata basis.
The idea of a leaseback,was for the management to pay taxes from holiday lets.If this management company only ever paid 3 months rent in six years,i would have thought Mary would have to pay it all back!.
Also i thought you only had 12 months to appoint a new management company otherwise i wouldn,t be recognised as a leaseback!
Regards
John