- The two stages of opting to tax
- What the notification must include
- Where to send it, and the acknowledgement that never comes
- Missed the 30 days?
- When you need permission first
- The related VAT1614 forms
- Think long term before you opt
- Who's bound by your option
- Don't opt with a plan to undo it
- The verdict
- Frequently asked questions
VAT1614A is the HMRC form you use to notify an option to tax land or buildings for VAT. Opting to tax turns supplies of a commercial property, such as rent or a sale, from exempt into taxable, so you can recover the VAT on related costs. You make the decision first, then notify HMRC, normally within 30 days.
This guide follows HMRC's VAT1614A page and VAT Notice 742A, Opting to tax land and buildings, as of October 2026.
The two stages of opting to tax
- Make the decision. It can happen at a board meeting or less formally, but Notice 742A says to keep a written record showing the land or buildings and the date of the decision.
- Notify HMRC in writing, normally within 30 days of the decision. VAT1614A is the standard way to do it.
The option has effect from the date of the decision, or any later date you specify, as long as you notify in time. It can never take effect from a date before you decided.
What the notification must include
- Exactly which land or buildings you're opting to tax.
- The date the option has effect.
- A map or plan if you're opting discrete areas of land, or the full postal address and postcode for a building.
- Your VAT registration number, or your VAT Registration Unit reference if registration is pending, which speeds up processing.
- A signature from an authorised person with the legal capacity to make the notification.
Where to send it, and the acknowledgement that never comes
If you're VAT registered, you can email the notification to HMRC's Option to Tax Unit, and HMRC recommends putting the property address with postcode and the effective date in the subject line. You can also post it, or send it with your VAT registration application if you're not yet registered. The big change most people don't know: HMRC no longer issues option to tax acknowledgement letters. If you email, you get an automated reply showing the date HMRC received it, and that's your record. Post gets no response at all.
Notice 742A says the option has legal effect even without an acknowledgement, and you should start charging VAT from the effective date. Keep that automated email safe, because buyers and their solicitors will ask for proof of the option years later.
Missed the 30 days?
You can ask HMRC to accept a belated notification, but it'll only do so if it's satisfied you made the decision at the time. Send an explanation and evidence. Notice 742A says HMRC will normally accept either direct documentary evidence, such as correspondence with third parties mentioning the option, or evidence that you've charged output tax and claimed input tax in line with the option, plus a written declaration from a responsible person such as a director.
When you need permission first
If you've made, or intend to make, exempt supplies of the property within the 10 years before the option is to take effect, you need HMRC's written permission (form VAT1614H) unless you meet one of the 4 automatic permission conditions. If you meet one, you still notify on VAT1614A and state which condition you satisfy. Examples of automatic permission include a mixed-use development where the only exempt supplies were the dwellings, and exempt supplies that were incidental, such as income from an advertising hoarding or a radio mast.
The related VAT1614 forms
| Form | What it does |
|---|---|
| VAT1614A | Notify an option to tax |
| VAT1614C | Revoke an option within the 6-month cooling-off period |
| VAT1614D | Disapply the option for buildings being converted into dwellings |
| VAT1614E | Notify a real estate election |
| VAT1614H | Apply for permission to opt |
| VAT1614J | Revoke an option after 20 years |
Think long term before you opt
An option to tax can't normally be revoked until at least 20 years have passed, apart from the 6-month cooling-off route. Notice 742A also says to keep your correspondence and decision records for a minimum of 6 years, and longer is better. The option doesn't pass to a buyer when you sell, and it doesn't bind your tenants, so tell a tenant early if they might want to opt for a sub-let.
If you're not VAT registered yet, Notice 742A lets you send the notification with your VAT1 registration application, and once the option is in place, the VAT you charge goes through your normal VAT Return.
Who's bound by your option
Only the supplies you make of your own interest in the property are affected, unless you're in a VAT group. Notice 742A says that if you are, or become, a member of a VAT group, other members can be bound as relevant associates. Group structures with property in one company and trading in another need checking before anyone signs.
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Don't opt with a plan to undo it
Notice 742A says that if, when you make an option, you already intend to revoke it during the 6-month cooling-off period, the option is treated as invalid from the outset. The cooling-off route is for a real change of mind, not a short-term VAT recovery plan.
The verdict
VAT1614A is a one-page form with long consequences. Record the decision, notify within 30 days by email so you get a dated receipt, check whether past exempt lettings mean you need permission first, and only opt if you're happy with a 20-year commitment.
Frequently asked questions
What is VAT1614A?
It's the HMRC form for notifying an option to tax land or buildings for VAT.
What's the deadline for VAT1614A?
You must normally notify HMRC within 30 days of your decision to opt to tax.
Does HMRC acknowledge an option to tax?
No. HMRC no longer issues acknowledgement letters, but if you email the Option to Tax Unit you get an automated response with the date it was received.
Can I revoke an option to tax?
Within 6 months on form VAT1614C if the conditions are met, or after 20 years on form VAT1614J.
Do I need permission to opt to tax?
Only if you've made or intend to make exempt supplies of the property in the 10 years before the option takes effect and you don't meet an automatic permission condition.
Does an option to tax pass to the buyer?
No. The option doesn't transfer with the sale, and the buyer decides whether to opt.
