James Meakin considers the next steps on VAT, TOGCs and property acquisition following HMRC's recent guidance
Recent guidance from HMRC paves the way for retrospective claims to TOGC treatment in some cases.
Following the First-tier Tribunal decision in the case of Robinson Family Ltd [2012] UKFTT 360 HMRC published Revenue & Customs Brief 30/12 on 16 November 2012 which confirms that it will accept that where the transferor of a property rental business retains a small reversionary interest in the property on the grant of a lease TOGC treatment can apply. HMRC accepts that provided the value of the reversion retained is no more than 1 per cent of the value of the property immediately before the grant of the lease TOGC treatment can still apply on the basis that the retained...
