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.
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.
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.
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.
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.
Longmores Solicitors LLP
I recently had reason to check this with HMRC – engaged by Canadian resident to obtain reseal of Canada grant in England, assent and gather in. Whilst there was property and money in the UK, it is where the service is delivered, the assets are irrelevant – we charged VAT.