Policy paper

Revenue and Customs Brief 2 (2022): VAT early termination fees and compensation payments

This brief introduces a revised policy on VAT early termination payments and compensation payments and replaces Revenue and Customs Brief 12 (2020).

• From: HM Revenue & Customs
• Published: 7 February 2022

Documents

Revenue and Customs Brief 2 (2022): VAT early termination fees and compensation payments

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Details

The brief explains that HMRC is introducing a revised policy on early termination payments and compensation payments. The brief:

• replaces Revenue and Customs Brief 12 (2020): VAT early termination fees and compensation payments
• gives an update on the VAT treatment of early termination, compensation and similar payments
• advises businesses that adopted the treatment outlined in Brief 12 (2020) on what action they should take

Published 7 February 2022