On first principles I would say that the input tax is not receoverable as it is not directly linked to a taxable supply. Or is it? Can it be argued that the supply was the whole of the lease obligation which happened at the time when taxable supplies were made. Therefore, the payment of the lease after cessation of trade is linked to the taxable suuply made in the past. Hence, an input tax recovery under VAT form 427 could be possible?
Does anybody have any detailed knowledge of this?