The lease contained special clauses relating to the tenant’s liability to pay VAT at a time before the landlord had supplied evidence of an election to waive the exemption.
Held: Laws LJ said: ‘I acknowledge that the respondent must point to a provision in the lease which disapplies s. 89(1) of the Act. Otherwise, whatever one might think of the equity of the position, the statute increases the consideration (that is the rent) by the amount of the VAT due following the landlord’s election to waive exemption, whether or not the tenant knows of the election.’
Judges:
Laws LJ
Citations:
[2004] 2 P and CR 5
Jurisdiction:
England and Wales
Cited by:
Cited – Mason v Boscawen ChD 18-Dec-2008
The landlord had opted to charge VAT on part of the rent. The tenant fell into arrears and now challenged a notice to quit which included the VAT. The court was asked what constituted ‘rent’ for the purposes of a demand for rent founding a notice to . .
Lists of cited by and citing cases may be incomplete.
Landlord and Tenant, VAT
Updated: 10 May 2022; Ref: scu.279103
