HMRC’s VAT Brewers’ Society Agreement terminated on 1 June 2018. HMRC have not published any formal guidance following the withdrawal.

Under the agreement, brewers were permitted to recover an agreed percentage of input VAT in respect of tied tenanted licensed houses containing a residential element.

The agreed percentage was widely accepted as being 90%, with a corresponding 10% VAT restriction. Although not officially part of the Brewers’ Society Agreement, the 90:10 split is typically accepted as also applying to the VAT liability of any rental or sale income from such properties (see Sale of tenanted pub case as an example)

VAT Notice 700/57 previously contained details of the Brewers’ Society Agreement. This has been updated to note that “A business who is currently using this agreement should review their method to ensure that it is still fair and reasonable.” HMRC is not planning to add further guidance.


Squirrel ad


Are you enjoying our content? 

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.

 

 

Comments (0)

Rated 0 out of 5 based on 0 voters
There are no comments posted here yet

Leave your comments

  1. Posting comment as a guest.
Rate this post:
Attachments (0 / 3)
Share Your Location

 

Enjoying the Practical Tax content on www.rossmartin.co.uk? 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad