Letter revoking a VAT option to tax
If you exercise the option to tax a commercial property for VAT purposes it is irrevocable except in a few situations. If you do want to revoke the option, use our letter to help ensure that you send the correct documents and information to HMRC so that it is effective.
About the letter
Once made there are only three situations where you can revoke an option to tax:
- by notification within six months of the option being made (a cooling-off period)
- automatically six years after the interest in the land or building has been disposed of
- by notification where more than 20 years have elapsed since the option was made, and certain conditions are met.
Revocation is subject to conditions which are detailed in HMRC’s VAT Notice 742A (http://tinyurl.com/k5azk4p).
To revoke under either the first or third option, you need to complete the appropriate form - VAT1614C or VAT1614J respectively; however, we also recommend sending a covering letter with the form.
How to use
Use our Revoking Option to Tax Letter to create a letter to accompany a notice VAT1614C or VAT 1614J. You will need to enter the date the option was made, and the details of the commercial property that was subject to the option. We have designed the letter so that you can use it to revoke an option to tax within the six-month cooling off period or after 20 years. Delete the section of the form which isn’t applicable.
Note. If you don’t complete and send a VAT1614C or VAT1614J, your revocation won’t be processed.
Related Topics
-
HMRC bungles 2026/27 PAYE codes for pensioners
For some pensioners, the 2025/26 winter fuel payment should be collected via their 2026/27 PAYE code. HMRC has started to issue PAYE codes for the new tax year, but the extra charge is missing. What's going on?
-
Are you including too much income in your calculations?
Your business is partly exempt and you claim input tax on your mixed costs and general overheads by using the standard method based on turnover splits. What income should you exclude from the calculations?
-
MTD glitch risks confusion over 2025/26 payments on account
Some taxpayers testing Making Tax Digital for Income Tax (MTD IT) are seeing confusing and incomplete payment information because their data is split between HMRC’s digital and self assessment systems. What’s happened?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.