Land and buildings ― buying and selling ― overage arrangements

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides:

•
an explanation of overage arrangements
•
guidance regarding the VAT treatment of overage payments
•
guidance regarding other VAT implications of overage payments

For an overview of the VAT treatment of buying and selling land and buildings, see the Land and buildings - buying and selling - overview guidance note.

For commentary on the VAT legislation that affects overage arrangements, see De Voil V4.110R.

What are overage arrangements?

Land or a building may be sold on terms that may result in the buyer being required to make additional payment(s) to the seller in the future. Overage is an arrangement whereby the seller is entitled to receive from the buyer one or more payments, in addition to the initial consideration, if one or more events occur in the future. For example, the buyer may be required to pay the seller an amount in addition to the initial consideration if planning permission is obtained, and a further amount if a development is completed. The

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Owner-Managed Businesses

Allowable expenses for property businesses

Allowable expenses for property businessesGeneral itemsMany of the principles applying to allowable expenses for property businesses are similar to those that apply for trading and the rules for individuals in a property business are generally the same as for companies with some exceptions which are

14 Jul 2020 13:26 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more

Tax Returns

Employment Tax

Ministers of religion

Ministers of religionMost ministers of religion or members of the clergy are either office-holders or employees and so their earnings are taxable under ITEPA 2003 as employment income and are subject to Class 1 National Insurance.For the purposes of the tax system, a minister does not have to belong

14 Jul 2020 12:14 | Produced by Tolley Read more

Value Added Tax

Payments on account (POA)

Payments on account (POA)This guidance note provides and overview of the payments on account regime (POA). More in depth commentary can be found in De Voil Indirect Tax Service V5.110.What are payments on account?VAT registered businesses with an annual VAT liability of more than £2.3m are required

14 Jul 2020 12:52 | Produced by Tolley Read more

��Ƶ