VAT on Lease Extension Premium?

[isaune]

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

[les35]

It depends! One key factor is whether the lease itself attracts VAT. And, does the premium cover any other services? What does the correspondence say that the landlord will do in exchange for the premium?