HMRC call for evidence on simplifying the VAT land exemption

HM Revenue and Customs (HMRC) has released a call for evidence on the value added tax (VAT) rules relating to land and property.

The call for evidence asks for experiences of how the VAT rules on land and property currently work, including any difficult areas, and asks whether they require simplification.

HMRC is seeking views on possible options for change, including plans to remove:

  • the ability to opt to tax and making all relevant transactions exempt
  • the option to tax and making all land and property taxable at a reduced rate

Other proposals include making:

  • all commercial land and property taxable at the standard rate with an option to exempt
  • all ‘minor’ and ‘short-term’ interests in land and property subject to VAT
  • most supplies of land and property interests that have been registered with HM Land Registry (HMLR) taxable (with other interests in land exempt)
  • supplies of land and property interests that have been registered with HMLR exempt (with other interests in land taxable)

Get involved

Thank you to those who have already sent in your views to be considered for our response to the government.

If you have any comments on the proposals that you would like us to consider, email property@lawsociety.org.uk by midday on Monday 5 July.

Read HMRC's call for evidence

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