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HMRC internal manual

VAT Time of supply

From
HM Revenue & Customs
Updated
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Tax points for specific types of supply: land and property: compulsory purchase

The transfer of land as a result of compulsory purchase is a supply for VAT purposes. In most cases the transfer does not take place until the price that is to be paid has been agreed. In these circumstances there is nothing to prevent the vendor from following the normal tax point rules. In some cases, however, the property may be transferred ahead of the vendor knowing the amount to be received from the purchasing body. Where this occurs,regulation 84(1) of the VAT Regulations 1995 (see VATTOS2330) applies and limits the time of supply to the receipt of payment. It must be emphasised that this only applies where the amount to be received is not known at what would otherwise be the basic tax point.