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.
In JT Quinns...
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
