We have a limited company VAT registered that charges VAT on the rent for 2 commercial properties we own. The two properties were bought some years ago and VAT was charged on the purchase price which we dully reclaimed. However we are looking to invest in a domestic property purchased from a private buyer with no VAT on the selling price. We also want to rent this domestic property. In order for it to rent we could not add VAT. Therefore we want to charge rent without VAT. Is this possible in the context of our limited co, vat registered and currently charging vat on commercial rents to not charge VAT on the domestic rents. If we can zero rate the domestic rent I presume that we cannot reclaim any vat on cost pertaining to the domestic property (as we do on the commercial property), because we don’t want the rent to attract VAT. Or can we?. Is the best we can do to offset gross costs against profit tax. Thanks in advance for any UK tax advice.