Are you a landlord? Do you fully understand when VAT is and is not applicable whilst providing utility services to your tenants?

Compulsory service charges by landlords to residential tenants and to tenants of commercial properties, for which no option to tax has been exercised, should be exempt from VAT.

Whether there is a single supply of rented property, or multiple supplies of services for a rental property, it can often be a complex matter to determine. Not everyone will fully appreciate the VAT ramifications, and lease agreements may not reflect the position in practice. As a landlord it is a good idea to ensure a review of your VAT treatment of property rental agreements has been carried out.

This should consider the way in which utility and similar services are provided to you and by you.

For further information or assistance with reviewing your VAT obligations contact Duncan Stocks on 01189 554185 or email duncan.stocks@bakertilly.co.uk.