The First-Tier Tribunal has dismissed an appeal by a firm of conveyancing solicitors against HMRC assessing for VAT on search fees.
In line with industry practice, Brabners LLP have historically treated such fees as disbursements. This practice had been supported by the Law Society in its published guidance to members.
However, HMRC argued that where the firm obtained property search results on behalf of a client and provided advice on the results that this was a part of its overall services to the client and that VAT should be charged on the full amount including the disbursement.
Use the button below to read Gavin West’s complete summary of the case, including what this means for the conveyancing sector, how it may affect your business, and how you can get in touch.Read the full publication