In Bramall Contracts Limited & Others v HMRC [2018] TC06648, the FTT concluded that VAT had not been recovered on cars purchased for leasing and therefore the repayment claim for VAT on manufacturer bonuses were recoverable.

It was accepted that, given the length of time that the claim was over that BCL would not be able to prove that it had not recovered input VAT. It was therefore agreed that if the FTT found that input VAT was not recoverable due to the input VAT block for Cars, BCL would not have recovered it and the repayment claim could proceed.

The FTT found:

The FTT concluded that, with the exception of 1994-95, the input VAT was blocked on the cars purchased for leasing. This meant that the errors would not self-cancel as HMRC believed was the case.

BCL’s appeal was allowed and they could recover the VAT apart from for 1994-95.

Links

Car or van for VAT?

External link

Bramall Contracts Limited & Others v HMRC [2018] TC06648