How do I notify HMRC of an option to tax?
Answered 17 March 2026
Here is a comprehensive answer on how to notify HMRC of an option to tax (VAT on land and buildings):
How to Notify HMRC of an Option to Tax
What the law says
The option to tax is a two-stage process under VATA 1994, Schedule 10:
- Making the decision to opt to tax; and
- Notifying HMRC of that decision in writing.
Notification must be in writing (paragraph 34(1), Schedule 10) and must normally be given to HMRC within 30 days of the decision to opt (paragraph 20(2)(a), Schedule 10). HMRC has discretion to accept belated notification outside this 30-day limit (paragraph 20(2)(b), Schedule 10).
Importantly, HMRC has the power under paragraph 20(3) of Schedule 10 to require notification in a particular form, but has not exercised this discretion — meaning a notification by letter is equally valid as using the standard form.
HMRC guidance / practice
Step 1 – Check whether prior permission is needed
In certain circumstances (e.g. where exempt supplies have previously been made on the property), you must obtain HMRC's permission before opting to tax. If you notify without obtaining required permission, the option will be invalid, though HMRC has discretion to treat it as valid in limited circumstances. Where permission is granted, the option takes effect automatically from the application date and no separate notification is required.
Step 2 – Prepare your notification
Your notification must include:
- A clear description of the land or buildings being opted (full postal address including postcode, or a map/plan for discrete areas of land)
- The effective date of the option
- Your VAT registration number (or VAT Registration Unit reference if pending)
- The signature of an authorised person (see below)
You may use form VAT1614A (Notification of an option to tax land and buildings), though this is not compulsory.
Step 3 – Ensure the right person signs
The notification must be signed by an authorised person — typically the sole proprietor, a partner/trustee, a director, or an authorised administrator. If a third party signs on your behalf, HMRC requires written confirmation of their authority. The authorisation must include the opter's name/address, the authorised person's name/signature, and the opter's agreement to be bound by the representative's actions.
Step 4 – Send the notification
- By email (recommended for VAT-registered persons): Send to optiontotaxnationalunit@hmrc.gov.uk. Include the property address, postcode, and effective date in the subject line. You will receive an automated acknowledgement confirming the date of receipt — keep this for your records.
- By post: Send to the Option to Tax Unit. Note: no automated response will be issued for postal submissions.
- If not yet VAT-registered: Send the notification with your VAT registration application.
HMRC no longer issues acknowledgement letters. The option has legal effect even without acknowledgement, and you should begin charging VAT from the effective date.
Belated notification (after 30 days)
HMRC will normally accept a late notification if you provide either:
- Direct documentary evidence that the decision was made at the relevant time (e.g. correspondence with third parties referring to the option); or
- Evidence that output tax was charged and input tax claimed consistently with the option, plus a written declaration from a responsible person (e.g. a director) confirming the decision was made at the relevant time.
Note: a retrospective option is not permitted — the earliest effective date is the date the decision was actually made.
Citation sources
Notification (the second stage) must be in writing (paragraph 34(1), Schedule 10) and must normally be given to HMRC within 30 days of the decision to opt (paragraph 20(2)(a), Schedule 10). However, HMRC has the discretion to accept belated notification (paragraph 20(2)(b), Schedule 10) - see VATLP22400 for guidance on when to exercise this discretion. Paragraph 20 (3) of Schedule 10 gives HMRC the discretion to specify by tertiary law that an option to tax notification must be made in a particu
Your notification must state clearly what land or buildings you are opting to tax, and the date from which the option has effect (read paragraph 4.3). You can use the notification form VAT1614A VAT: notification of an option to tax land and buildings. If you’re opting to tax discrete areas of land you should send HMRC a map or plan clearly showing the opted land with your notification. If you’re opting a building that has a postal address give it in full including the postcode. It would speed up
For an option to tax to be notified effectively, (whether on a VAT 1614A form or by alternative means), it must be signed and dated by an authorised person who has the legal capacity to notify HMRC of such a decision. An authorised person can also give another person the authority to notify HMRC on their behalf. If the signatory is not an authorised person, or has not had such authority granted to them by an authorised person, the option to tax may be invalid. An authorised person must make it c
If you’re already registered for VAT, you can email your option to tax notification to optiontotaxnationalunit@hmrc.gov.uk. We recommend the subject line includes the: property address, including postcode effective date of the option to tax notification You can also send your notification by post to the Option to Tax Unit. If you send your notification by post you will not receive an automated response. For more information, read paragraph 4.2.4. If you are not registered for VAT, you can send y
HMRC no longer issues option to tax acknowledgement letters. If you send your notification by email to the Option to Tax Unit, you will receive an automated response, which will include the date HMRC received the notification. You should keep the automated response for your records. Notifications which were not sent by email to the Option to Tax Unit will not get a response. We will only contact you if we need more information. The option to tax has legal effect even though we do not acknowledge
The person responsible for making the decision and notifying the option to tax depends on: the type of legal entity holding (or intending to hold) the interest in the land or building who within that entity has the authority to make decisions concerning VAT In most cases this will be: the sole proprietor one or more partners (or trustees) a director an authorised administrator If you appoint a third party to notify an option to tax on your behalf, HMRC requires written confirmation that the thir
Once permission is granted, your option will automatically take effect from your application date, or from any later date you request in your application. There is no need for you to notify your option to tax separately once permission is granted. If you wish your option to take effect from your application date, keep evidence of the date you submit the application form (such as a certificate of posting).
Normally, written notification should be sent to HMRC within 30 days of the decision to opt. However, HMRC has the discretion to accept notification outside of the normal 30 day time limit (belated notification). While the law gives HMRC the discretion to accept a belated notification of an option to tax decision that has already been made, it does not allow a person to make a retrospective option to tax (in other words, a person cannot decide today to opt with effect from an earlier date). The
For your option to tax to be valid you, as authorised signatory (read paragraph 7.6), must normally make your notification within 30 days of your decision. You can ask HMRC to accept a notification made more than 30 days after your decision but we will not do so unless we are satisfied that you made your decision to opt at the relevant time. If you would like us to consider accepting a belated notification, you should enclose with your notification an explanation of your circumstances and any ev