VAT Cases & News

In Rolldeen Estates Limited v HMRC [2023] TC08783, the First Tier Tribunal (FTT) found that a company which claimed its Option To Tax (OTT) on a property was invalid had no right of appeal against HMRC’s decision to treat the OTT as validly exercised.

In Moulsdale t/a Moulsdale Properties v HMRC [2023] UKSC12, the Supreme Court held that the seller of an opted-to-tax property did not meet the provisions allowing him to disapply the option to tax. He was not a developer, the sale was not exempt and VAT should have been charged.

In HMRC v The Prudential Assurance Company Limited [2023] UKUT 54, the Upper Tribunal allowed an appeal by HMRC against a decision that no VAT was due on services provided whilst the parties were members of a VAT group that were not invoiced or paid until after the supplier left the group.

In The Young Driver Training Limited v HMRC [2023] TC08748, the First Tier Tribunal (FTT) found that the appellant was not making supplies that included the right to admission and so was unable to take advantage of the temporary reduced VAT rate introduced during the pandemic.

HMRC have published Revenue and Customs Brief 3 (2023) ‘Changes to VAT treatment of local authority leisure services’. The supply of leisure services by local authorities to members of the public may now be treated as non-business. 

HMRC have published Revenue and Customs Brief 2 (2023) ‘VAT and value shifting consultation update’. This sets out HMRC’s conclusions and actions taken following the VAT and value shifting consultation in 2021.