Compensation Payments

R&C Brief 12 (2020) gives HMRC’s view of early termination fees and similar compensation payments. In the light of recent CJEU case law the range of cases where such payments are to be treated as outside the scope compensation is set to be narrowed.

However, the examples given would usually be regarded as cases where a supply is made in any case. The Brief appears to be a device for effectively withdrawing any rulings that have been made to the contrary in the past, and to ensure that there is no misunderstanding as to the scope of such payments.