Unclaimed VAT on M&A Deals: Potential Loss of £150m Annually for UK Businesses

• Companies are missing out on VAT rebates that could help with cash flow
• Scottish businesses could be losing around £10 million of recoverable VAT every year
• UK businesses could be losing around £150 million in unclaimed VAT
• VAT reclaim rules vary based on corporate and share structures
• Azets found that the UK’s M&A industry generates significant VAT on professional fees
• It is important for both buyers and sellers to prepare a detailed VAT plan
• Business owners have up to four years to submit a claim to recover VAT on qualifying costs
• Azets has prepared a VAT reclaim ready reckoner for businesses and advisors to review recent transactions.

Source: magazine.dailybusinessgroup.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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