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bigduckontax
bigduckontax, Accountant
Category: Tax
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Our client has a building which has been 'opted to

Resolved Question:

Hi
Our client has a building which has been 'opted to tax'and therefore VAT goes on top of the rent.
However, what would the VAT position be if the building burnt down and they claimed from insurers 3 years' rent?
Would they get to keep the 3 years' rent or would HMRC say that they should deduct 20% VAT and send them 20% of what they received from the insurers?
Thanks
Kind regards
Paul
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello Paul, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. As there is no supply involved in this situation then VAT does not come into the equation. Where there is no supply then there cannot be a VAT liability. I do hope that you find my reply of assistance.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your excellent support.