VAT on starter business investments
Our client ran a firm that specialised in finding investors for high-tech startups. They had a complex commission structure partly based on the potential future value of the businesses into which investment was placed.
Our client had received conflicting advice on the VAT treatment of its activities.
We reviewed the activities, its sources of income including the mechanism under which it was paid for its services. We reached a conclusion, based on sound analysis of the VAT legislation, HMRC guidance notes and relevant caselaw, that our client’s services were VAT exempt.
Our client was able to move forward with certainty on how VAT applied to its business.
If you are having difficulty navigating VAT for your business then get in touch with ETC Tax and we can guide you on all tax matters.
