Overview

Nabarro presents an in–depth look at virtual assignments and their tax treatment.

The advantages of using a virtual assignment are:

It can be drafted to be commercially equivalent to an actual assignment;

Virtual assignments can be quicker to effect as they do not require consent;

There is no parting of possession or occupation on a virtual assignment; and

there will be no SDLT to pay.

However, it should be noted that the tax treatment of a virtual assignment is not identical to an actual assignment: capital allowances cannot pass and there may be VAT leakage.

Please click to read an overview by Nabarro, which contains further explanation and full details of two recent cases.