This guidance note is intended to provide an overview of the areas that should be considered as part of a VAT review when a business makes or receives supplies of land and property. This document should be used in conjunction with the VAT review checklist Checklist ― VAT review when undertaking a review to seek to ensure all the relevant items have been covered.
Whilst this guidance and associated checklist have been prepared to seek to cover the common issues and risks which might arise, care should be taken to ensure that any specific business or sector issues are considered as part of a comprehensive review.
Land and property
This is a very complex area of VAT legislation and businesses who are not regularly involved in land and property transactions are more likely to get the VAT treatment incorrect. This can be a particular issue as the values associated with land and property transactions tend to be significant. This means this is an area HMRC routinely consider when undertaking a VAT audit or similar
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