Recover on VAT on the sale of a business

Recover on VAT on the sale of a business

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I have client (VAT registered) who is in the process of selling his business, via a sales agent.

The sales agents fees will include VAT.

Am I right in thinking that this VAT cannot be relaimed, as it is not related to taxable supplies of the business?

Thanks

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chips_at_mattersey
By Les Howard
17th Mar 2015 16:25

Input Tax

The VAT charged is 'residual' input tax, and, if the business was fully taxable, it can be claimed in full.

Thanks (1)
RLI
By lionofludesch
17th Mar 2015 17:06

Form 427

Used to be claimed on Form 427. 

But that was a very long time ago.

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