As previously highlighted, HMRC recently clarified their policy on the VAT treatment of early termination fees and compensation payments as a result of certain European Court cases, which has led to some uncertainty regarding the VAT treatment of such payments. A recent case at the Inner House of the Court of Session (CSIH), Ventgrove Ltd v Kuehne+Nagel Ltd, is the first case to be heard that covers this new policy.
Source: haysmacintyre.com
