In Cavendish Green Limited v HMRC [2018] UKUT 0066, it was found that the sale of land on which a new house was to be built and on which a large boundary wall had been built did not have sufficient planning to enable zero-rating.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Richard Akester v HMRC [2017] UKUK 0404, the Upper Tribunal (UT) set aside the First-Tier Tribunal’s (FTT) dismissal of a DIY VAT refund claim. The FTT can only consider whether construction works are lawful during the period of construction. Breaches of planning conditions after construction, should be ignored.
In Nestle UK Limited v HMRC [2018] UKUT 0029, the Upper Tribunal (UT) agreed that although chocolate Nesquik was zero-rated, banana and strawberry Nesquik is standard rated.
In Global Switch Limited v HMRC [2017] TC06252, the First-Tier Tribunal agreed that a £297,845 surcharge, which was ultimately realised due to a £1,500 VAT error, was appropriate.
In HMRC v Balhousie Holdings Limited [2017] UKUT 410, the Upper Tribunal (UT) agreed with HMRC, that the sale and leaseback of a care home was the disposal of an entire interest in a property and a self-supply VAT charge arose.
In Hanuman Commercial Limited v HMRC [2017] TC06249, the First-Tier Tribunal (FTT) concluded that the novation of a contract for the sale of land was a standard rated supply not an exempt supply of land.
In Harley-Davidson Europe Limited v HMRC [2017] TC06268, the FTT agreed with the taxpayer that the membership fees should be apportioned between zero-rated and standard rated supplies.