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HMRC have published a summary of responses to their Call for evidence, ‘Simplifying the VAT Land Exemption’, which closed earlier this year.

The Call for evidence invited views to assess potential options for the simplification of the land and property VAT exemption. Supplies of land and property are exempt from VAT, subject to fifteen exceptions and twenty-six notes. It was split into two sections:

73 responses were received from a broad range of respondents including businesses, advisers, trade bodies and individuals.  

Suggestions given by respondents for simplifying the existing rules included:

Next steps

In reply, the Government have confirmed:

Further discussion with businesses will begin in the early part of 2022:

Useful guides on this topic

Call for Evidence: Simplifying the VAT land exemption
HMRC have issued a new call for evidence, 'Simplifying the VAT Land Exemption' which seeks views on the VAT rules relating to land and property and how they may be simplified.

Land & Property VAT (Subscriber guide)
An outline of the VAT treatment of some of the more common supplies of land and property.

Land & Property: Dwellings
What is a dwelling for VAT purposes? What is the VAT treatment for construction, conversion, sale, and letting of a dwelling?

Land & Property: Non-residential
This guide considers the VAT treatment of the supply of non-residential property.

Opting to tax land and property
What is an option to tax? What do I need to do to opt to tax? What happens if I buy an opted property?

Land & Property VAT at a glance
A summary of VAT on common land and property transactions.

Land & Property: Relevant residential & relevant charitable purpose
What are the VAT rules for land and property that is used for a relevant residential purpose or a relevant charitable purpose? What are the claw back provisions affecting change of ownership or use?

External link

Consultation outcome: Call for Evidence: Simplifying the VAT Land Exemption


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