VAT rate changes

VAT rate changes have been frequently encountered in recent times - from 17.5% to 15% to 17.5% and now again (on January 4, 2011) to 20%. Detailed analysis of the property implications of the rate change will appear in this month's CPI Update later this week. The rate change impacts on rental payments, rent deposits, SDLT calculations, contract deposits and completion balances. HMRC guidance on the effects of the rate change in all walks of life can be seen at the HMRC website under the heading Increase in the standard rate of VAT to 20 per cent.