Is the VAT position the solicitor's job or the accountant's?

Both, and the split is where things fall through. The solicitor establishes what the contract says; the accountant advises on registration, recovery and the option to tax. Neither covers the whole question alone.

What should I ask the solicitor for in writing?

Written confirmation of whether VAT is payable, evidence of any option to tax including HMRC's acknowledgement, and whether the price is quoted inclusive or exclusive of VAT.

Why does the lender need the solicitor's details so early?

Because the facility draws through them, and most VAT facilities rely on solicitor undertakings about the drawdown and where the HMRC refund is paid. Late introductions delay completion.

What if the solicitor says VAT is "not their area"?

Confirming what the contract says about VAT is squarely their area. Advising on recovery and registration is not. Make that distinction explicit rather than accepting a blanket answer.

For brokers

Working With Solicitors on VAT Cases

PropertyVAT Team · Updated 21 October 2026 · 3 min read

On a VAT case the solicitor sits at two choke points: they establish what the contract says about VAT, and they control the money on completion day. Brief them late and both become problems.

The division of labour

The commonest cause of a VAT surprise is a gap between two advisers who each assumed the other had it.

Question	Whose job
Does the contract say VAT is payable?	Solicitor
Is there an option to tax, and is it evidenced?	Solicitor, via enquiries
Should the buyer register for VAT?	Accountant
Should the buyer opt to tax?	Accountant or VAT adviser
Is the VAT recoverable?	Accountant
Is TOGC treatment available?	VAT adviser, with the solicitor on the contract
Where do the completion funds come from?	Broker and lender
Who draws the facility?	Solicitor

Nobody owns the middle of that table by default. As the broker, you are often the only person seeing all of it.

What to ask for, in writing

At instruction, not at completion:

Is VAT payable on this purchase? A yes or no, from the contract or legal pack.
If yes, on what basis — an option to tax, or a new building?
Please obtain the option to tax notification and HMRC's acknowledgement.
Is the price inclusive or exclusive of VAT?
Is TOGC treatment proposed, and what does the contract say if it fails?
Where the property is mixed use, how is the consideration apportioned?

Written answers matter because an assurance recalled in week six is not evidence, and because the lender will want to see the basis for the VAT figure.

The "not my area" problem

Some solicitors will say VAT is a matter for the accountant. Partly right, and the distinction is worth making explicitly.

Theirs: what the contract says, what the seller has confirmed, what the option to tax documentation shows.

Not theirs: whether the buyer should register, whether the VAT is recoverable, whether to opt to tax.

If you frame the request as "please confirm what the contract provides" rather than "please advise on VAT", you usually get a clear answer quickly.

Why the lender wants them early

Most VAT facilities run on solicitor undertakings:

Confirming the drawdown mechanics and the completion date
Confirming the VAT figure matches the completion statement
Committing where the HMRC refund will be paid

That last one has a practical consequence people miss. If the facility requires the refund to go to a specified account, the accountant needs to know before filing the return — not after HMRC has paid it somewhere else.

Introduce the solicitor to the lender early. An undertaking negotiated in week one is routine; the same undertaking in the final week is a bottleneck.

Coordinating two facilities

Where there is a senior bridge and a VAT facility, the solicitor is the point where they meet.

Both lenders need the same completion date
Both need the same solicitor details
The solicitor needs the net advance from each, after fees deducted at source
If a second charge is involved, the consent must be documented

The common failure is not credit. It is two lenders ready on different days, or a completion statement built on gross facility figures rather than net advances.

A short brief that works

Send this at instruction:

This purchase may carry VAT. Please confirm in writing whether VAT is payable and on what basis, and obtain the option to tax notification and HMRC acknowledgement if one exists. The buyer is arranging a separate VAT facility alongside the senior funding; both will draw on completion. Lender details to follow — please expect undertakings regarding the drawdown and the destination of the HMRC refund.

Four sentences. It establishes the question, the evidence required, and that a second facility exists — which is the thing solicitors most often learn too late.

This guide is general information, not legal advice. Clients should instruct their own solicitor and take their own VAT advice.

Frequently asked questions

Is the VAT position the solicitor's job or the accountant's?: Both, and the split is where things fall through. The solicitor establishes what the contract says; the accountant advises on registration, recovery and the option to tax. Neither covers the whole question alone.
What should I ask the solicitor for in writing?: Written confirmation of whether VAT is payable, evidence of any option to tax including HMRC's acknowledgement, and whether the price is quoted inclusive or exclusive of VAT.
Why does the lender need the solicitor's details so early?: Because the facility draws through them, and most VAT facilities rely on solicitor undertakings about the drawdown and where the HMRC refund is paid. Late introductions delay completion.
What if the solicitor says VAT is "not their area"?: Confirming what the contract says about VAT is squarely their area. Advising on recovery and registration is not. Make that distinction explicit rather than accepting a blanket answer.

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