Gary Barnett and Bryn Reynolds (Simmons & Simmons) cover a Scottish case on the correct VAT treatment of break fees and two decisions in the financial services sphere.
VAT and break fees
In Ventgrove Ltd v Kuehne + Nagel Ltd [2022] CSIH 40 the Inner House of the Court of Session has held that a tenant was required to pay VAT in addition to a break fee when exercising its option under a break clause. The court held that the correct VAT position was clear and there was no legitimate expectation arising from HMRC guidance to the contrary.
Ventgrove was the landlord of opted premises occupied under a lease by Kuehne + Nagel (KN). The lease contained a break clause entitling KN to terminate the lease by payment of £112 500 plus VAT (if any).
In February 2021 KN gave notice to exercise the break clause and paid...
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Gary Barnett and Bryn Reynolds (Simmons & Simmons) cover a Scottish case on the correct VAT treatment of break fees and two decisions in the financial services sphere.
VAT and break fees
In Ventgrove Ltd v Kuehne + Nagel Ltd [2022] CSIH 40 the Inner House of the Court of Session has held that a tenant was required to pay VAT in addition to a break fee when exercising its option under a break clause. The court held that the correct VAT position was clear and there was no legitimate expectation arising from HMRC guidance to the contrary.
Ventgrove was the landlord of opted premises occupied under a lease by Kuehne + Nagel (KN). The lease contained a break clause entitling KN to terminate the lease by payment of £112 500 plus VAT (if any).
In February 2021 KN gave notice to exercise the break clause and paid...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
