Readers' forum: An election day

I have taken on a new client and one of his businesses deregistered from VAT three months ago. The registration related to a commercial property he owns and rents out to a tyre business. He deregistered because the rental income he earns is below the VAT threshold. However HMRC has now written to him saying that the registration has an option to tax election in place (no details given) and the letter asks for an explanation of what he has done with the properties he owns.

My client is sure that he never made an option to tax election with HMRC when he bought the property ten years ago although he does think he paid VAT on the purchase price and claimed this back as input tax. He definitely charged VAT on the rent to the tenant. He cannot produce a copy of his first VAT return and the solicitor...