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Readers' Forum - Covid situation

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09 June 2020

Issue: 4747 / Categories: Forum & Feedback

VAT issues on coronavirus rent holiday.

Covid situation

My client owns some commercial and residential properties. The commercial properties consist of shops and currently these are closed due to the coronavirus situation. The client is sympathetic to the situation of these tenants and is giving them a rent holiday. However some of the properties have residential flats above the shops and those properties will not have a rent holiday.

Should my client still charge VAT on the residential portion of the rent? VAT has been charged previously on the commercial and residential rent where the property has been opted.

What are readers’ thoughts here?

Query 19 564 – Landlord.

Reply by Mixer

Some input VAT may have been recovered incorrectly.

...

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Readers' Forum - Covid situation

© Copyright LexisNexis 2024. All rights reserved.

09 June 2020

VAT issues on coronavirus rent holiday.

Covid situation

My client owns some commercial and residential properties. The commercial properties consist of shops and currently these are closed due to the coronavirus situation. The client is sympathetic to the situation of these tenants and is giving them a rent holiday. However some of the properties have residential flats above the shops and those properties will not have a rent holiday.

Should my client still charge VAT on the residential portion of the rent? VAT has been charged previously on the commercial and residential rent where the property has been opted.

What are readers’ thoughts here?

Query 19 564 – Landlord.

Reply by Mixer

Some input VAT may have been recovered incorrectly.

...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4747

Categories: Forum & Feedback [1]

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