Q&A: property rental tax points and unpaid rents

摘要

In our regular Q&A series from Croner Taxwise, VAT adviser,Tony Chamberlain explores the tax implications of deferringrent payments during the Covid-19 pandemicQ. My client owns a commercial rental property that theyhave opted to tax, therefore charging VAT on the rents.One of their tenants, an unconnected third party, whoholds a three-year lease has been severely affected bythe Coronavirus outbreak and is struggling to meet thisquarter’s rent payment. My client is concerned thatbecause they have issued a request for payment at thebeginning of the quarter, they must still pay the VAT toHMRC, even if they allow their tenant to defer thepayment for the time being?