Summary
The issue in this case was whether an option to tax was valid when, at the time of the grant, (a) the Appellant did not consider that the building would become, a capital item and (b) the occupier was not yet connected with a financier of the development, even though it would become so subsequently. The First Tier Tribunal (FTT) considered that there was an intention or expectation that the building would be a capital item and that the Appellant knew that the occupier would become connected with a development financier, so that the option was disapplied. So it denied the Appellant's claims for input VAT on property expenditure.
