HMRC provides some clarity on VAT treatment of termination and compensation payments


The position has been in flux since September 2020, when HMRC made a surprise announcement that it was changing the VAT treatment of early termination payments and other compensation payments made under commercial contracts.

This article considers the background to the changes, while examining the detail of the new rules and how they are expected to impact commercial contracts.


VAT news


  • VAT news
  • VAT News
  • VAT news