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1st September 2011 at 5:18 pm
#600
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Recently there was concern that HMRC may consider that VAT actually payable should be included in exchanges. This was on the basis that while market value does not include VAT (as per SDLTM), para 2 Sch 4 nevertheless requires VAT actually paid to be included. For example, if market value is ?200 and actual consideration is ?100 plus VAT then, in an exchange, the chargeable consideration would be ?210. I understand that HMRC have backed down on this. This has nothing to do with the FA 2011 changes to the exchange rules.