The following Tax practice note Produced in partnership with Martin Scammell provides comprehensive and up to date legal information covering:
This Practice Note is about the VAT implications of supplies of land and buildings where the consideration is something other than money (barter transactions).
Barter transactions can create unanticipated VAT liabilities and may have other unwelcome VAT consequences, of which the parties need to be aware. VAT clauses in contracts relating to transactions of this type may need careful drafting.
The issues arise where consideration for a supply is not, or is not wholly, in money. So the monetary consideration is likely to be less than one would expect. In a commercial context, transactions that are described as gifts, or are for a low price or a low rent, will usually be part of a barter, whether or not the parties have thought of it in those terms.
Some barter transactions, such as an exchange of one plot of land for another, are easily identifiable. Other cases are less obvious. To consider the position, you may need to break a deal down into its constituent parts, and consider whether one party would be doing X, if another party was not doing Y.
VAT is due on the consideration for a supply, whether or not this is paid in money. Suppose that a piece of land is exchanged for goods, and that a sale of the land would be
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This Practice Note discusses Term Loan B (TLB) facilities which frequently appear as a tranche of senior facilities in syndicated loans in leveraged financings. TLBs are an established feature in the US market and increasingly used in the European lending market for institutional investors.This
Produced with input from Rebecca Cousin of Slaughter and May on market practice.This Practice Note summarises the rules and guidance in relation to parties who are, or may be presumed to be, acting in concert for the purposes of The City Code on Takeovers and Mergers (the Code). In particular the
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