HMRC have today agreed to delay the application of VAT to Local Authority CON29 searches until the 4 July.
A statement from Michael Revis, the Chair of the CIPFA VAT committee read: "HMRC have agreed to delay the implementation of VAT on Local Authority CON 29 services until 4th July 2016. This date coincides with wider changes to the CON 29 form.
"In the meantime HMRC are still considering the CIPFA submission for continued non-business treatment. A response is expected prior to the 4th July 2016 implementation date."
It is still unclear what local authorities plan to do in response to the charge when it comes to pricing, with some planning to add the 20% charge, some saying they will absorb, and some will use the opportunity to review their entire pricing structure."
We will continue to keep you updated as soon as any further information becomes available.