Transactions involving land and property are often complex and the VAT liabilities can vary. Generally, the supply of land and property is exempt from VAT however certain supplies may be standard-rated, zero-rated or even outside the scope of VAT depending upon the circumstances.
When disposing of land and property such as surplus hospital land or staff accommodation, the NHS must apply the correct VAT liabilities in the same way as everyone else. Professional advice should therefore always be sought at the earliest opportunity in order to ensure transactions are treated correctly for VAT purposes and you don’t incur unnecessary costs.