HMRC is reviewing the response to the recent consultation on reforms to VAT rules relating to land and property and reactions to their proposals for simplification. The document summarised some of the complexities in the VAT treatment of supplies of land and property, including VAT exemption and the option to tax, ie, the ability to charge standard rate.

The report also considered various ideas for potential VAT simplification on the supply of land. These suggestions ranged from removing the option to tax entirely to making some supplies of land taxable but with an option to make others exempt.