In the current economic climate, we are seeing more and more lease restructures – particularly break options being removed coupled with the grant of rent-free periods. Landlords and tenants keen to mitigate the effects of the Covid – 19 lockdown who are discussing lease variations need to make sure that they are aware of any VAT implications.
If either party has opted to tax the property for VAT purposes then VAT will need to be charged on any supplies treated as made by that party even if the supply is not money but the value of a non-cash consideration.
Source: harpermacleod.co.uk
