VAT treatment of termination payments
28 September 2020
Following recent European litigation, HMRC has announced a change to its practice in relation to the VAT treatment of early termination fees and similar payments, which will impact (inter alia) leases of moveable assets, including vehicles, machinery and other equipment. This change is particularly unwelcome in the COVID-19 era where there are likely to be more contract terminations than usual.
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Clifford Chance
