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Landlords Costs

In the days of a buoyant commercial Property market, it was quite common for ingoing Tenants to pay the Landlord’s legal costs. This needs to be considered in relation to the particular circumstances having regard to supply and demand.

If the Tenant did agree to pay the Landlord’s costs, or to contribute towards these costs, the position in relation to the Value Added Tax on the Landlord’s costs should always be considered.

Generally, the Tenant that pays the Landlord’s costs is not able to recover the Value Added Tax on those costs.

 

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