Q&As

What is the VAT treatment of an overage payment where the initial transaction was a transfer of a going concern?

read titleRead full title

Published by a ÑÇÖÞÉ«ÇéÍø Tax expert
Published on: 16 January 2019
imgtext

This Q&A assumes that the subject matter of the transaction is land in the UK.

Overage describes the situation in which the seller retains the right to receive from the buyer an additional amount of consideration after the completion of the sale and payment of any initial consideration. This additional payment is generally dependent on the occurrence of certain future events.

For VAT purposes, overage is additional consideration for the sale of the land. It is therefore likely to have the same VAT treatment as the original consideration, unless there is a rule

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:

Popular documents

Commercial service charges—VAT implications

Commercial service charges—VAT implicationsThis Practice Note is about the VAT treatment of non-residential service charges. General positionService charges are typically payable to the landlord under a lease or licence, in the same way as rent, and in this case they follow the same VAT treatment as

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some

Strike out—making an application to strike out a statement of case

Strike out—making an application to strike out a statement of caseA strike out order can be made either following an application by the parties or on the court's own initiative. This Practice Note deals with the scenario of the order being made following a party's application.Making an application