Pub property

We have a potential new client which is a limited liability partnership (LLP) operating a property development business and which is VAT registered. The LLP has purchased a freehold public house which has planning permission for about 20 residential units to be built on the site.

The LLP paid VAT on the purchase and opted to tax to reclaim it. Following purchase the LLP demolished the pub and has found a potential purchaser for the land which is a housing association.

The association is not registered for VAT and I presume that the LLP will have to charge VAT on the sale unless the association can disapply for VAT on this transaction.

We would be very grateful if readers can advise on whether this is possible. If not can readers suggest any planning points that might be helpful either to the LLP client or that we can pass...