HMRC has published a brief which now removes the concession for postal searches which allows solicitors to treat fees for postal searches as disbursements.
This follows the decision in Brabners (2017) where it was legislated that electronic search fees were not disbursements and VAT should be charged, however, the concession for postal searches would continue to apply.
From 1st December 2020, the concession will no longer apply and solicitors must therefore charge VAT on fees for such recharges.
How we can help?
Our tax team can assist in your review of your current VAT treatment. Please contact Una McKearney in our tax department.
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