Various lease transactions can give rise to VAT considerations for the landlord and also the tenant. It is important that prior to the execution of any lease transaction that the specific circumstances and the VAT history of the lease and property is reviewed to ensure that any potential VAT cost exposure is minimised. These transactions could include ;
- Grant of a new lease
- Surrender/termination of a lease
- Amendment of lease terms
- Assignment of a lease
- Leasing of the property/part property to a sub tenant
We have outlined below some of the key considerations with respect to VAT on commercial property lease transactions.