Charging VAT on estate with foreign Executors

How do forum users deal with VAT when instructed by the Executors of estates when the Executors are resident abroad? In this case they are resident in Israel and the UK estate comprises only a few thousand pounds worth of shares which will be sold in due course. I have also been assisting with dealing with various pensions but there is no UK property. I am unsure whether VAT is chargeable in this case.

Claire Carr
Rexton Law LLP

My understanding of the rules on the place of supply of services (https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a) is that, if the executors belong outside the EU, VAT isn’t chargeable: see section 12.6.

Eddie Bell
McMillan Williams

My understanding is that VAT is chargeable if the service is supplied in the UK, not if is not. If that is still the case, the residence of the executors is irrelevant unless you take the view that because they are non-resident you are providing the service to them at the place where they are, ie Israel, so no VAT. There is usually a need to apportion your bill between services supplied in the UK and services supplied outside.

Julian Cohen

Simons Rodkin

Eddie Bell’s analysis is correct as far as general administration duties are concerned, hence, in Claire’s case, VAT should not be chargeable upon non-EU Personal Representatives. However, it is my understanding that, if UK Land or Property forms an asset of a UK Estate, the legal services provided specifically in relation to the disposal of that Land or Property will not benefit from that exemption.

Alec Trengove
RadcliffesLeBrasseur

1 Like

I agree with Eddie Bell’s and Alec Trengove’s opinions, but wanted to add that my understanding was that litigation is also excluded from the exemption and therefore VAT is chargeable on the legal fees of the litigation.

Charles Fraser
Longmores Solicitors LLP