In Landlinx Estates Ltd v HMRC [2020] UKFTT 220 (TC) (13 May) the First-tier Tax Tribunal (FTT) held that the grant of an option to buy land and the release (or surrender) of such an option fell within the exemption from VAT for transactions in land and buildings.
The taxpayer entered into an agreement which gave it the option to purchase some land. The seller had not opted to tax the land and if the sale had taken place it would have been exempt from VAT. The option was not exercised and later the parties agreed to release the obligations in the agreement on payment of £1 425 000 by the seller to the taxpayer. The taxpayer treated the payment as exempt but HMRC took the view that it was for a taxable supply.
The FTT noted that VAT...
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In Landlinx Estates Ltd v HMRC [2020] UKFTT 220 (TC) (13 May) the First-tier Tax Tribunal (FTT) held that the grant of an option to buy land and the release (or surrender) of such an option fell within the exemption from VAT for transactions in land and buildings.
The taxpayer entered into an agreement which gave it the option to purchase some land. The seller had not opted to tax the land and if the sale had taken place it would have been exempt from VAT. The option was not exercised and later the parties agreed to release the obligations in the agreement on payment of £1 425 000 by the seller to the taxpayer. The taxpayer treated the payment as exempt but HMRC took the view that it was for a taxable supply.
The FTT noted that VAT...
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.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")