Taxable inducements
Simpson, M
Taxable inducements - 2001 - Estates Gazette (0146) 17 November 2001, 174(1) .
Looks at the VAT treatment of inducements paid in connection with property transactions and examines the principles of VAT law. Considers the consequences of the European Court (ECJ) ruling in "Cantor Fitzgerald" and "Mirror Group" that VAT is payable on inducements. Suggests that the ECJ ruling in these cases and in "Lubbock Fine & Co" should clarify the VAT treatment of inducements paid in connection with leases. However, UK businesses will also face possible VAT costs in the form of irrecoverabe input tax. Explains the practicalities for landlords and tenants and the situation if an inducement has been paid or received in recent years. Highlights the complications in applying VAT to land transactions and concludes that VAT implications should be considered carefully and early in the transaction.
VALUE ADDED TAX
VALUE ADDED TAX
CANTOR FITZGERALD V CUSTOM AND EXCISE COMMISSIONERS
LUBBOCK FINE & CO V CUSTOMS & EXCISE COMMISSIONERS
MIRROR GROUP PLC V CUSTOM AND EXCISE COMMISSIONERS
LAND TRANSACTIONS
PROPERTY TRANSACTIONS
INDUCEMENTS
EUROPEAN COURT OF JUSTICE
EUROPEAN UNION
Taxable inducements - 2001 - Estates Gazette (0146) 17 November 2001, 174(1) .
Looks at the VAT treatment of inducements paid in connection with property transactions and examines the principles of VAT law. Considers the consequences of the European Court (ECJ) ruling in "Cantor Fitzgerald" and "Mirror Group" that VAT is payable on inducements. Suggests that the ECJ ruling in these cases and in "Lubbock Fine & Co" should clarify the VAT treatment of inducements paid in connection with leases. However, UK businesses will also face possible VAT costs in the form of irrecoverabe input tax. Explains the practicalities for landlords and tenants and the situation if an inducement has been paid or received in recent years. Highlights the complications in applying VAT to land transactions and concludes that VAT implications should be considered carefully and early in the transaction.
VALUE ADDED TAX
VALUE ADDED TAX
CANTOR FITZGERALD V CUSTOM AND EXCISE COMMISSIONERS
LUBBOCK FINE & CO V CUSTOMS & EXCISE COMMISSIONERS
MIRROR GROUP PLC V CUSTOM AND EXCISE COMMISSIONERS
LAND TRANSACTIONS
PROPERTY TRANSACTIONS
INDUCEMENTS
EUROPEAN COURT OF JUSTICE
EUROPEAN UNION