I have a client who is a VAT registered farmer. Part of the farm was being reposessed by the bank and a receiver appointed. In the end the client settled with the bank/receiver and the land was retained by the client. The client had to pay the receiver and legal fees etc. and now wants to reclaim the VAT charged on those fees. Can he claim the VAT back on these fees? If he sold the land VAT would not be chargeable on the sale however he is using the asset for VATable activities i.e. farming?
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