What is the SQE?
Who is the SQE for?
Costs and fees
Dates and locations
Assessment information
The assessment day
Results and resits
Due to inactivity, and for security reasons, you will be automatically logged out of your SQE account in 1 minute.
Press ’continue’ to stay logged in.
The monitoring and maximising diversity survey has been updated. Please return to the survey to reconfirm your answers and complete the new section at the end.
You must do this to remain eligible for the SQE. You will not be able to book your next assessment until you have updated your answers.
A man owns the freehold of a commercial building and intends to grant a lease of the building to an insurance company.
The man is registered for Value Added Tax (VAT) and, prior to granting the lease, exercises an option to tax the building.
The insurance company makes only exempt supplies for the purposes of VAT in the course of its business.
What effect does the man’s option to tax the building have on the rent payable to the man by the insurance company?
A. The rent payable will not be subject to VAT.
B. The rent payable will be subject to VAT at 0%.
C. The rent payable will be subject to VAT at 20%, which will be recoverable by the insurance company.
D. The rent payable will be subject to VAT at 20%, which will be irrecoverable by the insurance company.
E. The rent payable will be discounted in the hands of the insurance company by 20%.
D - The rent payable will be subject to VAT at 20%, which will be irrecoverable by the insurance company.
Create your personal SQE account and book your assessments.
Find out what happens after passing the SQE and admission to the roll of solicitors.