VAT is recoverable by a taxable person if it is attributable to taxable supplies made in the course or furtherance of a business. For an explanation of the rules on VAT recovery generally, see Practice Note: When can a person recover VAT?

VAT paid on costs incurred in corporate transactions, including on the professional fees of accountants, lawyers and other advisers, may be recoverable depending upon the circumstances of the transaction. This Practice Note looks at the recovery of VAT on the costs of business sales and acquisitions, share sales and acquisitions, corporate restructurings, and share issues. It also covers VAT recovery by holding companies.

For information on the recovery of VAT by a UK acquisition group in a private equity-backed buyout, see Practice Note: Tax and buyouts—deductibility and VAT recovery of acquisition group deal costs.

This Practice Note contains references to judgments of the EU Court of Justice. For information on the ongoing significance of EU law in the UK following the end of the Brexit implementation period on 31 December 2020, see Practice Note: Retained