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Concessional treatment of postal searches as disbursements for VAT to end on 1 December 2020

The ‘postal concession’ was informally agreed between HMRC and the legal profession in 1991. It allows solicitors and conveyancers not to charge VAT on fees for property searches conducted by post, even though not meeting all the conditions to be disbursement for VAT purposes. HMRC’s Brief 6/2020 announces that the concessional treatment of postal search fees as disbursements will cease from 1 December 2020.

Source: Mazars