Commentary

V3.104A Examples of transactions which have been held not to be supplies for consideration

Part V3 Supplies, acquisitions and imports

V3.104A Examples of transactions which have been held not to be supplies for consideration

V3.104A Examples of transactions which have been held not to be supplies for consideration

The following are examples of transactions which have been held not to be supplies for consideration.

  1.  

    •     the refund to an agent of disbursements incurred on behalf of his principal1

  2.  

    •     apportionments or 'settlements' of rent on completion of the sale of a landlord's interest in a tenanted property, or of the assignment of a tenant's interest in a lease, within a rent quarter where the lease remains in place2

  3.  

    •     certain cancellation charges (but booking fees may so amount)3; but see also 'Unfulfilled supplies—treatment from 1 March 2019' under 'The nature of a supply' at V3.102. See also, and by contrast, the decision in Vodafone Portugal, discussed in more detail at V3.104B.

  4.  

    •     compensation paid to tenants under Landlord and Tenant Act 1954 or Agricultural Tenancies Act 1995 where a notice to quit has been served under the statutory procedures and the tenant has complied with it4

  5.  

    •     a deposit taken as security to ensure the safe return of hired goods5

  6.  

    •     payment of dividends6

  7.  

    •     donations and other voluntary contributions7. For donations made in addition to an admission charge, see Glasgow's Miles Better Mid Summer 5th Anniversary Ball v C & E Comrs (1990) VAT Decision 4460 unreported (Part V12). For the treatment of a charitable levy collected as part of a management fee, see Clowance Holdings Ltd v C & E Comrs (2001) VAT Decision 17289 (Part V12) where it was held that

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