So you bought a commercial property, applied a 1614D to remove the option to tax, you started work and ran out of money, what happens to VAT you have reclaimed?
The good news it you can keep it and zero rate the sale, provided..
For conversions, real and meaningful works must have been carried out before they have ‘person converting’ status. Judgement should be used to decide whether works are real and meaningful.
https://www.gov.uk/hmrc-internal-manuals/vat-construction/vconst04700
