The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The VAT treatment of transactions relating to land and property is very complex. Care needs to be taken when determining the correct VAT treatment. This guidance note is intended to provide you with a brief overview of the main points that need to be considered, as well as links to other guidance notes that provide a more in depth analysis of the points raised.
More detailed information on land and property transactions can be found in VATLP01000
The following section provides a brief overview of the most common types of land and property transactions.
See also VAT and Property, para 2.29.
For VAT purposes, the term 'land' includes any of the following:
civil engineering works
trees and plants
waterways, ways, watercourses and commons
any other structure or natural object in, under or over 'land' that continues to remain attached to it (ie certain fixtures and fittings)
VATA 1994, Sch 4, parah 4; VATLP02200
A business makes a supply of land if it grants one of the following:
a grant of a freehold or leasehold interest in the land
an assignment of a lease by an existing tenant to a new tenant
a surrender of an interest in land to the person who granted the interest
An interest in land includes a 'legal' or 'beneficial' interest in the land. A legal interest usually constitutes some formal ownership of an interest or right of land (ie a freehold or leasehold interest).
A beneficial interest is the right to receive the benefit of any supplies made in the land in question and another party could own the legal interest in the land. The benefit could be the right to receive any rental income or sale proceeds.
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Statutory references to ITTOIA 2005 relate to unincorporated businesses and CTA 2009 relate to companies unless otherwise stated.Legal and other professional fees can represent substantial costs to a business. A detailed analysis is often required for the purpose of preparing tax computations as
This guidance note explains how to calculate the amount of tax that arises under the lifetime charge. In general terms the lifetime charge will apply to individuals who transfer property into a trust that is subject to the relevant property regime. See the Chargeable transfers and Occasions of
Interest paid on qualifying loans is deducted from the taxpayer’s total income (ie a Step 2 deduction from total income). See the Proforma income tax calculation guidance note.Interest on qualifying loans is usually paid gross by the individual borrower; tax is not withheld at source. This includes
Normal due dateIndividuals are required to pay any outstanding income tax, Class 2 and Class 4 national insurance and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK resident individuals who