Prior to 1 June 2008, the option to tax was also referred to as the election to waive exemption.
From 1 June 2008, it’s only referred to as the option to tax.
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This notice assumes that you have a working knowledge of basic VAT principles as outlined in VAT guide (VAT Notice 700).
These are: Your option to tax covers all the land, and any buildings or civil engineering works which are part of the land.
Your option to tax will cover the discrete area of land that you specify, and will not affect any adjoining land.
For example, a racecourse grandstand may provide electricity and shelter for stalls, or other facilities, within its peripheral area.
An option to tax on the grandstand would extend over the whole area of land that uses the benefits.
If your interest in the building is restricted to one floor, your option to tax will still cover the remaining floors of the building.