Etienne Wong (15 Old Square) discusses the new disclosure regime for tax avoidance schemes involving VAT to be introduced by the Finance Act 2017.
Consider the following scenario. Mr X owns a commercial building. He bought it in 2010 from a developer and paid VAT on its purchase. He opted to tax. In 2012 he let (the whole of) the building to Y Co. Mr X now enters into an agreement to sell the building subject to the lease to Y Co to an (unconnected) third party Mr Z. Mr Z immediately opts to tax the building and notifies HMRC that he has done so. The sale by Mr X to Mr Z is treated as the transfer of a business as a going concern (TOGC) within article 5 of the Value Added Tax (Special Provisions) Order SI 1995/1268 and notwithstanding...
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Etienne Wong (15 Old Square) discusses the new disclosure regime for tax avoidance schemes involving VAT to be introduced by the Finance Act 2017.
Consider the following scenario. Mr X owns a commercial building. He bought it in 2010 from a developer and paid VAT on its purchase. He opted to tax. In 2012 he let (the whole of) the building to Y Co. Mr X now enters into an agreement to sell the building subject to the lease to Y Co to an (unconnected) third party Mr Z. Mr Z immediately opts to tax the building and notifies HMRC that he has done so. The sale by Mr X to Mr Z is treated as the transfer of a business as a going concern (TOGC) within article 5 of the Value Added Tax (Special Provisions) Order SI 1995/1268 and notwithstanding...
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