From: "Troy Steadman" 
Newsgroups: uk.finance
Subject: Re: VAT
Date: 22 Apr 2006 05:30:40 -0700
   posting-account=R7WSowwAAAD53T0SHAPLFrX9g546w2I8

David Booth wrote:
> If I am charged interest on an overdue lease payment, would it be correct to
> have to pay VAT on the interest?
>
> --
> D Booth

Lease on a VATable business premises? Lease on a "lease hire" of
equipment?

Interest charged by a bank is zero rated, but it is easy to see how an
additional payment on a lease might become part of the lease charge
itself.