This is a complex area with several issues that need to be addressed, preferably before exchange of contracts. In the main, VAT problems arise when the vendor has "opted to tax" the building or land being sold. By "opting to tax" the building or land, the vendor must charge VAT on top of the sale price, unless the building has existing tenants and the sale includes the rights to any existing leases in place. This sale is known as a TOGC (Transfer of Going Concern). The reason why a TOGC is preferred by a purchaser is that he will not have to pay any VAT on the purchase (giving a cash flow saving) and also there is a stamp duty saving, because stamp duty is payable on the VAT-inclusive price of a building. Your SIPP can register for VAT and reclaim the amount of VAT paid on the property transaction. However this will create a cashflow issue as the reclaim can take several months to be repaid. Avoid the potential pitfalls by contacting the team at i-SIPP.