Page 12 - Lettings Revolution
P. 12
rister’s opinion
Roger Thomas
It follows that, provided that there is a genuine letting between the landlord and the
agent, and a further genuine letting between the agent and the occupying tenants,
each transaction will be an exempt supply for VAT purposes, and will not be liable to
tax the standard rate.
In the circumstances, provided that the actual arrangements create genuine leases
or lettings each of which gives rise to a relationship of landlord and tenant – in the first
place between the property owner (as landlord) and the intermediary agent (as tenant)
and in the second place between the intermediary agent (as landlord) and the occupi-
er (as tenant), and those lettings carry with them the usual rights and responsibilities
of parties to such transactions, I am of the opinion that HMRC will rightly accept the
arrangements as giving rise to exempt supplies of rent and not to a combination of
exempt rent and standard rated agent’s commissions.
Click this link to read the
opinion in full
Roger Thomas
It follows that, provided that there is a genuine letting between the landlord and the
agent, and a further genuine letting between the agent and the occupying tenants,
each transaction will be an exempt supply for VAT purposes, and will not be liable to
tax the standard rate.
In the circumstances, provided that the actual arrangements create genuine leases
or lettings each of which gives rise to a relationship of landlord and tenant – in the first
place between the property owner (as landlord) and the intermediary agent (as tenant)
and in the second place between the intermediary agent (as landlord) and the occupi-
er (as tenant), and those lettings carry with them the usual rights and responsibilities
of parties to such transactions, I am of the opinion that HMRC will rightly accept the
arrangements as giving rise to exempt supplies of rent and not to a combination of
exempt rent and standard rated agent’s commissions.
Click this link to read the
opinion in full
