Following much speculation in the sector Alan Carey at HMRC has today written to CIPFA with an update on the implementation of VAT on CON29 fees.
The update is as follows:
Property search fees
I refer to the decision made at the November CIPFA meeting for an implementation date of 1 January 2017 in relation to the VAT treatment of property search fees.
I understand the deadline is not possible for a few authorities. In fairness to those authorities which have already made the change, I do not propose a general extension to the deadline of 1 January 2017. Instead, where Local Authorities cannot make the change by 1 January, they will need to tell us when they can do so – but we expect full implementation by no later than 31 March.
The letter from HMRC is posted on TIS online and can be accessed using the following link
If you have any questions, please don’t hesitate to contact us.
June Young 07799 814676 June.Young@pstax.co.uk