V

Vacant Possession

Vacant possession is the right of a purchaser to exclusive use of a property on completion of the sale, any and all previous occupants having moved out.

Value Added Tax Value Added Tax (VAT) is a type of indirect tax levied on goods and services for value added at every point of the production or distribution cycle, starting from raw materials and going all the way to the final retail purchase. In some countries it is known as the Goods and Services Tax (GST).

Each business along the production chain is required to pay a VAT on the value of the produced good/service at that stage, with the VAT previously paid for that good/service being deductible at each step.

The final consumer, however, pays the VAT without being able to deduct the previously paid VAT, making it a tax on final consumption. The credit system built into the VAT ensures that solely final consumption can be taxed under a VAT.

In the UK VAT is levied by HMRC and is at 20%.

[See ‘HMRC’.]

VAT 769

A VAT769 form is used to notify HM Revenue and Customs of an insolvency of a VAT-registered trader. It is used in both corporate and personal insolvency matters and the completion and dispatch of the form is one of the first things an insolvency professional will do on a job.

A form VAT 769 should be completed within 21 days of the appointment if appointed as a:

• Trustee in Bankruptcy (or Sequestration – Scotland) of a VAT-registered individual;
• Liquidator of a VAT-registered company;
• Receiver in the Administrative Receivership of a VAT-registered company;
• Administrator in the Administration of a VAT-registered company.