Market leading insight for tax experts
View online issue

Other cases that caught our eye 14 January 2022

VAT on option to terminate lease early

Ventgrove Ltd v Kuehne + Nagel Ltd [2021] CSOH 129 (22 December 2021) is a notable order of the Court of Session interpreting the terms of a lease between a landlord and tenant containing a break option in return for the payment of a sum ‘together with any VAT properly due thereon’. The resulting discussion of whether VAT was properly due for the purposes of this option included consideration of HMRC’s 2020 policy announcement on early termination and similar payments. Although not directly commenting on the correctness in law of the shift in HMRC’s policy the case contains an interesting discussion distinguishing the authorities relied on by HMRC for its policy change from the question of whether the exercise of an option to terminate within an original lease is a taxable transaction. Read the decision.

Inaccuracies in tax returns

In JT Quinns...

If you or your firm subscribes to, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.