Share this content
4

Do I charge VAT on fixtures sold with property?

VAT on fixtures sold with property

Didn't find your answer?

Search AccountingWEB

VAT registered client is selling an exempt property. An amount will be allocated to fixtures and fittings in the contract.

Does he charge VAT on the F&F element, or is it incidental to the building?

Thanks

Replies (4)

Please login or register to join the discussion.

By Ruddles
18th Dec 2017 15:07

When you say allocation in the contract, I assume that you are referring to a split of consideration between heritable property and moveables (rather than a 's198' split) - in which case VAT will be chargeable - subject to TOGC rules.

Thanks (0)
Replying to Ruddles:
avatar
By alltaxedout
18th Dec 2017 15:40

Sorry Ruddles, I am talking about a s198 split. Does that change the answer?

Thanks (0)
Replying to alltaxedout:
By Ruddles
18th Dec 2017 15:59

Yes - if £x is the total consideration agreed, then although a s198 election may be referred to in the contract, it doesn't change the fact that £x is being paid for the property.

The only thing that the s198 split will affect is capital allowances - it will have no effect on VAT, CGT or SDLT/LBTT.

Thanks (1)
Replying to Ruddles:
avatar
By alltaxedout
18th Dec 2017 17:36

Great ... thanks

Thanks (0)
Share this content