When a property is repossessed by a lender, the supply of the property for VAT purposes is still by the borrower (Notice 742, para. 9.2 (2012 edn)).

Business Brief 20/1993 (30 June 1993) is reproduced below.

THE SALE OF REPOSSESSED PROPERTY

HM Customs and Excise are clarifying the VAT treatment of repossessed property sales following the representations from Building Societies and other lenders.

When a property is repossessed by a lender the supply of the property for VAT purposes is still by the borrower, even though the sale of the property is handled by the lender.

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