RENT DEPOSITS

The Council has business parks which are opted to tax and therefore rents on these units are subject to VAT at the standard rate.

Are rent deposits / bonds relating to these properties subject to VAT or exempt or outside scope?

This area appears to be open to misinterpretation.

Parents
  • If it is a deposit for rent i.e. a month in advance, then it is subject to VAT. While a fully returnable bond held by the landlord or a third party against returning the property in good condition is not subject to VAT, unless it is set against rent defaults in the future.

Reply
  • If it is a deposit for rent i.e. a month in advance, then it is subject to VAT. While a fully returnable bond held by the landlord or a third party against returning the property in good condition is not subject to VAT, unless it is set against rent defaults in the future.

Children