VAT Property Solutions
Note: 24
Stamp Duty Land Tax is chargeable on the VAT inclusive value of the property, rent or premium. As regards premiums, Stamp Duty Land Tax will only be charged on the VAT inclusive premium if the landlord has elected to charge VAT at the date of the lease. However, as regards rents, where the landlord is entitled to charge VAT, Stamp Duty Land Tax will always be charged on the VAT inclusive rent unless the lease specifically states that the landlord is not entitled to charge VAT e.g. where the lease states that the tenant is not liable for any VAT which may be chargeable in relation to the lease, or that the rent and premium are inclusive of VAT and S.89 VATA 1994 does not apply to the lease. Where the landlord may charge VAT and there is no clause or term in the lease to prevent him from doing so, then Stamp Duty Land Tax will be charged on the VAT inclusive value of the rent. For these purposes VAT is calculated at the standard rate of 15%.
Contact: info@4eyesltd.co.uk Telephone: Phillip Henwood - 0044 (0)7793 707 839
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