The VAT option to tax disapplication rules pose a conundrum for landlords and tenants. Paul Beausang and Anisha Polson (Eversheds Sutherland) consider what should be done.
The rules concerning the disapplication of the option to tax are mechanical in nature and their application can sometimes manifest in unexpected outcomes.
The rules are complex broad and can lead to somewhat confusing results when litigated. The most problematic issue is that these highly technical anti-avoidance rules can rear their head in seemingly simple property transactions such as new lease agreements between landlords and tenants. The issue has also been exacerbated by a significant market change. Tenants of large trophy offices in the post-Covid era now attempt to encourage greater staff attendance through highly bespoke and carefully tailored spaces. It is however precisely these variations which give rise to the greatest disapplication risks. Landlords and tenants then...
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The VAT option to tax disapplication rules pose a conundrum for landlords and tenants. Paul Beausang and Anisha Polson (Eversheds Sutherland) consider what should be done.
The rules concerning the disapplication of the option to tax are mechanical in nature and their application can sometimes manifest in unexpected outcomes.
The rules are complex broad and can lead to somewhat confusing results when litigated. The most problematic issue is that these highly technical anti-avoidance rules can rear their head in seemingly simple property transactions such as new lease agreements between landlords and tenants. The issue has also been exacerbated by a significant market change. Tenants of large trophy offices in the post-Covid era now attempt to encourage greater staff attendance through highly bespoke and carefully tailored spaces. It is however precisely these variations which give rise to the greatest disapplication risks. Landlords and tenants then...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
