Q&As

What is the VAT treatment of a dilapidations claim on termination of a lease?

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Published by a LexisNexis Tax expert
Published on: 13 December 2017

As set out in Practice Note: VAT issues for lease assignments and terminations, dilapidation payments are outside the scope of VAT, being compensation to the landlord for the tenant’s failure to maintain the property as required under the lease. HMRC confirm in VAT Notice 742, paragraph 10.12

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United Kingdom

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