VAT Specialist: Exemptions & Guidance

Overview

Exemption — overview — items exempt from VAT in the UK.

Value Added Tax guidance produced by a Tolley Value Added Tax expert.

The goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9, Pt II. It is important to remember that not all supplies that come within a heading will be exempt from VAT. For example, income from the placing of bets is consideration for an exempt supply under Group 4, but income generated by a fixed odds betting machine is standard rated.

There are 16 group headings within Schedule 9, which are listed below, along with the relevant guidance note giving further analysis about each heading. For a video of Schedule 9, see the Schedule 9 — exemptions video.

The grant of any interest in or right over land or of any licence to occupy land, In relation to land in Scotland, any personal right to call for or be granted any such interest or right.

The grant of the fee simple (freehold)

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Reverse charge — buying in services from outside the UK. This guidance note covers the reverse charge that applies to services that have been bought in from outside the UK. For an overview of VAT and international services more broadly, see the International services — overview guidance note.

15 Dec 2020 14:02 | Produced by Tolley

The married couple’s allowance (MCA) is only available if one of the two spouses or civil partners was born before 6 April 1935. This means that one member of the couple must be at least 89 years old on 5 April 2024 to qualify for an allowance in the 2023/24 tax year.

Long service awards — employee recognition by an employer can be an important motivational tool, as well as having a positive effect on retention. Most employer awards made to an employee are treated as taxable earnings under ITEPA 2003, s 62 or as a benefit under ITEPA 2003, s 201 because they are.