In Landlinx Estates Ltd v HMRC [2020] TC7706, the First Tier Tribunal (FTT) found that release of an option to buy land (which was not opted to tax) was an exempt supply in line with EU legislation and HMRC's long-standing guidance. HMRC failed in its attempt to advance an argument to the contrary.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Colin and Susan Slaymark v HMRC [2020] TC7709, the First Tier Tribunal (FTT) found that input tax on a commercial property where the occupants had no obligation to pay rent should be disallowed.
In HMRC v Northumbria Healthcare NHS Foundation Trust [2020] EWCA Civ 874, the Trust was able to fully recover VAT on cars supplied to its employees under a salary sacrifice scheme, whilst also not charging VAT on the leases. It was deemed not to be carrying out an economic exercise.
In Mandarin Consulting Limited v HMRC [2020] TC07714, a career coaching service to Chinese students was found to be a supply of consultancy services and not of education. The place of the supply for VAT turned on whether the supply was made to students staying in the UK or their parents in China.
In June 2020, HMRC issued Revenue and Customs Brief 6 (2020) ‘VAT treatment of property search fees charged by solicitors and conveyancers’ confirming the withdrawal of the concession on the VAT treatment of property search fees obtained by post from 1 December 2020.
In June 2020 HMRC published Revenue & Customs Brief 8 (2020): change to partial exemption VAT treatment. This affects businesses who supply goods by way of hire purchase agreements.
In HMRC v Thorsteinn Gardarsson [2020] UKUT 0099, an appeal as to whether a day planner was a book or stationery has been remitted back to the First Tier Tribunal (FTT) to be remade. The FTT applied the wrong tests.