In Duncan Lichfield v HMRC [2017] TC06040, the First-Tier Tribunal (FTT) clarified that where a planning condition contains a specific ‘occupation’ condition, this is synonymous with a prohibition on use restriction as envisaged by legislation.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In HMRC v Mercedes-Benz Financial Services UK Ltd [2017] C-164/16, the Court of Justice for the European Union (CJEU) have issued a preliminary ruling, finding that the ‘Agility’ Personal Contract Plan (PCP) could be a supply of services and VAT may not payable at the outset in full.
In Brabners LLP v HMRC [2017] UKFTT TC06093, the First-Tier Tribunal (FTT) found that the charge to clients of search fees by a law firm were not disbursements as they are part of the overall service of conveyancing. VAT should be charged.
In Mr & Mrs Kelly T/A Ludbrook Manor Partnership v HMRC [2017] UKUT 0326, the Upper Tribunal (UT) confirmed that a recharge of construction costs when the taxpayer’s changed their minds about who would run the business did not constitute a supply so no VAT could be recovered.
In M J Hickey Plant Hire And Contracts Ltd v HMRC [2017] UKUT 0308, the Upper Tribunal (UT) concluded that a consistent VAT error, where the last day of the quarter was always included in the next VAT return suffered the lower delayed tax penalties, not those calculated under normal rules.
In Summit Electrical Installations Limited v HMRC [2017] TC06006, the First-Tier Tribunal (FTT) ruled that where a building qualifies as both a dwelling and a relevant residential property the subcontractor can give the dwelling precedent and zero rate its supplies.
In HMRC v Languard Homes Ltd and DD & DM Macpherson v HMRC [2017] UKUT 307, the Upper Tribunal concluded that the sale of a converted residential property, which was previously part residential and part commercial, cannot be zero rated.