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A client owns a buy to let property which is now showing considerable negative equity. He wishes to dispose of the property by offering it as a prize in an online competition requiring a certain level of skill (which will not be a lottery).
Tickets will be sold nationally at a price yet to be decided – probably £10 each. Legal advice has been obtained on the regulatory control aspects of such a competition (Gambling Act 2005) regarding any licences required.
HMRC have advised in writing that as the ‘sale’ is of a private house via an online competition it is regarded as a non-business activity and is not liable to VAT. We are concerned that HMRC have only looked at the disposal not the activity that leads to the disposal.
Do readers agree that there is no VAT liability?
As the property has...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
