Buy a business or sell a business. Search 59,442 businesses for sale. You can also buy a franchise opportunity or find a business broker.

VAT ?

Simon King
Posts: 16
27/08/2008 13:04:18
On a lease purchase of a public house, is the Rent Vatable and is VAT due on the Deposit taken by the owners? Help appreciated.

Thanks.

2 Replies
David Rhodes
Posts: 297
30/08/2008 17:37:53
The transfer of a business is exempt from Vat provided that the buyer is vat registered, so there should be no vat on a deposit.

Regarding the rent it really depends whether the landlord is registered for vat, if they are then they should be charging vat on the rent, which of course you could reclaim.

Horizon Business Agents www.horizonbusinessagents.co.uk
Simon King
Posts: 16
31/08/2008 08:05:27
Many thanks David - very helpful information. Cash flow is hindered a little from the VAT aspect on the rent, but so be it I guess.

Don't Dream It. Do It.

Browse articles, guides and case studies on how to buy a business and more.

View articles >>

The material contained in this Forum is provided on an "as is" basis and without warranty of any kind. Dynamis plc. shall not be liable for any damages of any kind from the use or mis-use of this Forum. The views expressed in this Forum are the views of the posting users and not of Dynamis plc.

For further details relating to Forum use, please see our Terms & Conditions

Change country Close

If you haven't been brought to the right country version of our site please select the correct one below: