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Where Taxpayers and Advisers Meet

VAT on Lease Extension Premium?

isaune
Posts:2
Joined:Wed Aug 06, 2008 4:05 pm
VAT on Lease Extension Premium?

Postby isaune » Wed Nov 16, 2016 11:25 am

Originally posted on VAT Forum but no response so trying this one instead.


Hi

Can anyone tell me, please, if VAT is payable on the premium a freeholder charges to extend a lease?

I know it is charged on the legal and surveyor fees.

But the big figure is obviously the premium itself and I am hoping the final bill will not include what will amount to a few grand of VAT.

Thanks

Ian

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: VAT on Lease Extension Premium?

Postby section 44 » Wed Nov 16, 2016 5:58 pm

Is this residential property? If so then no.

The premium is exempt from VAT unless the freeholder has opted to tax the property and that option to tax is effective (which it wouldn’t be for a dwelling, for example).


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