HMRC reverses its policy on surrenders

HMRC have recently released a business brief in which they confirm their acceptance that, in appropriate circumstances, the surrender of a lease can be treated as, or be part of, a VAT free transfer of a going concern. This change of policy means that claims can now be made for refunds of overpaid VAT on some lease surrenders as well as claims for stamp duty where it has been paid on VAT that should not have been charged.

In the same business brief, HMRC have also announced that, in some circumstances,, HMRC now accepts that a person acquiring a completed residential or charitable use development as part of a transfer of a going concern, inherits person constructing status and is therefore able to make a  zero rated first major interest grant in part or all of that building.

For further information, or to discuss the implications of these changes of policy, please contact either Gill Yates or David Pegg on 0845 177 5500