Question: My client owns and rents out commercial properties, mainly office blocks.  A local charity has asked to take a lease on one of the buildings but says that VAT should not be charged on the premium or rent. 

The property owner has opted to tax all of the properties because it does not want to be partly exempt and, more importantly, this particular building is within the capital goods scheme. 

He has been forewarned that if he were to make exempt supplies during the term of the scheme he may have to repay some of the VAT claimed on the building and, understandably, is not happy about that. Is there any choice in the matter?