VAT liability - Landlord gifting case
We were contacted by a client who had been given a rent-free period and, interestingly, a crane, by his landlord, all in the hope of encouraging him to surrender his lease and vacate a property earlier.
The client wanted us to work out his VAT liabilities regarding the crane, lease surrender and payment-free period.
Using our expert knowledge we looked into the case and found that the surrender of the lease was VAT exempt, and that the rent-free period was also outside the scope of VAT payment.
In VAT terms, the crane counts as an additional consideration, and is also exempt.
Watch Our Videos
Get the vital information you need quickly and easily by watching one of our guidance videos - topics include VAT assessments and penalties, VAT for charities, and maximising VAT recovery.