The government is to introduce VAT on the CON29 element of local authority searches from 1st January 2017.
Originally scheduled for February this year, HMRC delayed implementation until July to allow local authorities more time to prepare for the change. The July implementation was then postponed, in part due to objections from both the Law Society and the CIPFA VAT committee.
However, a statement posted on CIPFA’s website on 30th November reads:
HMRC has confirmed that VAT is to be imposed on CON29 fees from 1 January 2017. More information will follow in due course.
In giving the 1 January 2017 implementation date, HMRC is seeking to apply the law consistently across the whole UK economy within as reasonable a period as is possible.
Severn Trent Searches has obtained confirmation that this statement is correct and VAT will indeed be introduced on the CON29R and CON29O elements of searches from next month. The LLC1 element will remain exempt.We will be publishing revised prices for affected searches on our website as soon as local authorities announce them.