Of Mirrors and Anchors

Martin Scammell

In the first of a two-part article Martin Scammell of Ernst & Young LLP looks at Business Brief 12/05 on tenant inducements

And so at last it came:

'Following representations from and detailed discussions with various bodies HM Revenue & Customs now accept that lease obligations to which tenants are normally bound do not constitute supplies for which inducement payments on entering leases are consideration.'

The climbdown announced in Business Brief 12/05 issued on 15 June should not have surprised anyone. It was clear enough from the ECJ judgment in Mirror Group Case C-409/98 given in 2001 that inducements paid to incoming tenants were not normally taxable. Only Customs had managed to...

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In the first of a two-part article Martin Scammell of Ernst & Young LLP looks at Business Brief 12/05 on tenant inducements

And so at last it came:

'Following representations from and detailed discussions with various bodies HM Revenue & Customs now accept that lease obligations to which tenants are normally bound do not constitute supplies for which inducement payments on entering leases are consideration.'