In Fortyseven Park Ltd v HMRC [2019] EWCA Civ 849 the Court of Appeal has ruled that the sale of a fractional interest in a residential property was subject to VAT. The integral supply of concierge services was not the passive supply of a property landlord but more similar to that of a hotel.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In The Ice Rink Company Ltd and PI (Milton Keynes) Ltd [2019] UKUT 0108 the UT found that the FTT had made an error of law, when it decided that a “skate hire and admission” package sold as a package were two separate supplies as opposed to a single standard-rated supply and the skate hire supply element of the package could be treated as zero-rated if supplied to children. The case has been remitted to FTT for reconsideration.
In Stanley John Chmiel v HMRC [2018] TC7112 a company director’s failure to register his company for VAT resulted in a £4,250 penalty via a Personal Liability Notice. HMRC’s powers sometimes allow it to ‘pierce the corporate veil’.
In Owen Francis Saunders v HMRC [2019] TC6992 compensation paid under the Proceeds of Crime Act for shoddy workmanship cancelled out the underlying supply for VAT purposes: effectively there was no supply of goods or services.
SAE Education v HMRC [2019] UKSC Supreme Court found that an independent and private body providing education for profit was integrated with a university that its education services could benefit from the education exemption in Group 6 Schedule 9 VATA 1994.
In Snow Factor Limited v HMRC [2019] UKUT0077 the Upper Tribunal ruled that the appellant was not required to pay the sum of disputed VAT ahead of an appeal to the UT as it would cause financial extremity.
In Cube Construction (Southern) Ltd v HMRC [2019] TC07030, the FTT considered whether certain works to the roof, re-wiring, and doors of a listed building damaged by fire and rebuilt were alterations or repairs or incidental to repairs.