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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4956
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Our client has a building which has been 'opted to

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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?
Kind regards
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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Thank you for your excellent support.