RCB re lease variations because of Covid 19 crisis
06.08.2020
Prompted by the pressure placed on commercial landlords and tenants created by the Covid-19 crisis, HMRC has released a Revenue and Customs brief to summarise their view of the VAT and SDLT implications of some of the solutions being considered.
The brief doesn’t announce any changes to HMRC policy here, but it is a welcome reference document for those looking into this area, summarising HMRC’s views in one convenient location.
However, in our experience, the complexity and variety of solutions being considered by landlords and tenants require rather more analysis than this brief is able to provide so we recommend that any arrangements that consider extending tenants leases, defer rental payments, assign property interests or involve any more complicated changes to landlord/tenant relationships are thoroughly reviewed for VAT purposes.
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