Specific Liabilities
This involves a client contacting us regarding the surrender of a lease, a rent free period and the gift of a crane by the existing landlord. All these were given to this client to encourage him to leave the property earlier. We looked at this and basically the surrender of the lease was exempt, the rent free period was outside the scope and the provision of the crane is additional consideration for the surrender of the lease and therefore exempt.
Our advice on transactions involving a number of elements is that each element should be looked at to see whether there are multiple, single or composite supplies and how this impacts on the overall VAT liability of the transactions.
