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

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

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

Owner-Managed Businesses

Sales, advertising and marketing

Sales, advertising and marketingExpenditure on sales, advertising and marketing activities may include amounts which are disallowable for the purposes of calculating trading profits. This may be because the expenditure is:•capital in nature (see the Capital vs revenue expenditure guidance note)•not

14 Jul 2020 13:28 | Produced by Tolley Read more

Employment Tax

Payroll record keeping

Payroll record keepingUnder SI 2003/2682, reg 97, “...an employer must keep, for not less than 3 years after the end of the tax year to which they relate, all PAYE records which are not required to be sent to [HMRC]...”. Reasons for keeping the records include:•being able to calculate tax and

14 Jul 2020 12:52 | Produced by Tolley in association with Ian Holloway Read more

UU��ֱ��