HMRC have published Revenue and Customs Brief 1 (2026): 'Removal of linked goods concession', which confirms that the Extra Statutory Concession (ESC) for VAT on minor promotional items supplied in linked supplies schemes has been withdrawn.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In WM Morrison Supermarkets Ltd v HMRC [2025] TC09722, the First Tier Tribunal (FTT) found that rotisserie chickens were a supply in the course of catering, and therefore subject to VAT at 20%, as they were provided to customers in packaging that retained heat.
HM Treasury has released a summary of responses to its consultation 'VAT treatment of business donations of goods to charity'. The outcome of the consultation, announced at Autumn Budget 2025, is the introduction of a new VAT relief for business donations of goods to charity for onward distribution or use in the delivery of the charity's services.
In Places for People Homes Ltd v HMRC [2025] TC09695, the First Tier Tribunal (FTT) found that supplies of premises maintenance services made by flat maintenance trust companies were not exempt supplies of land.
In TSI Instruments Ltd v HMRC [2025] TC09676, the First Tier Tribunal (FTT) found that import VAT charged on goods entering the UK could not be recovered as the goods were not owned by the importer.
In Cascade Care Limited v HMRC [2025] TC09680, the First Tier Tribunal (FTT) found a drafting error in the law relating to the welfare services VAT exemption. By reading words into legislation to correct the error, the FTT found that supplies made by a company in Wales were exempt from VAT and not standard-rated.
HMRC have published 'Revenue and Customs Brief 6 (2025): VAT deduction on insurance intermediary services supplied outside of the UK'. This explains a change in the right for input tax deduction for insurance intermediary services supplied outside the UK before 31 December 2023.
