Change to VAT treatment for search fees by solicitors and legal firms

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Following years of uncertainty HMRC have now confirmed that from 1st December 2020, they will be removing the concession that allows law firms not to charge VAT on fees for property searches carried out by post. The concession as been in place since 1991 and law firms have the well-established practice of treating such searches as disbursements. It’s removal follows a decision by the First Tier Tribunal in 2017 after which HMRC consulted with the legal profession. Click here for more information.