VAT Partial Exemption Question

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T.C.
T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
Does anyone know if mortgage interest payments should be treated as exempt supplies for the purposes of the partial exemption method or whether they can be ignored. I have searched HMRC website but cannot find a definitive list. Help appreciated.

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  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
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    Hi TC,

    Finance charges are exempt from VAT as per schedule 9 http://www.opsi.gov.uk/acts/acts1994/ukpga_19940023_en_1
    And that would imply that, yes they should be included in your calculations, interest only mind not any capital repayment element.

    However, to be honest, I am not 100% sure, have you tried the MIP business support helpline?

    Let us know if you find the answer
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