Input VAT recovery on property SPV set up and operating costs

In the case of Melford Capital General Partner Ltd (MCGPL), the First tier Tribunal has held that input VAT on the costs of setting up and operating a property special purpose vehicle (SPV) was recoverable.  This was despite the fact...

Interpreting property planning law in the context of the conditions for refunding input VAT under the DIY building scheme

The First tier Tribunal (FTT) decision in Christopher Swales demonstrates the persistence sometimes required to overcome HMRC’s misconceptions of how to interpret land planning requirements in the context of tax law as it related to the conditions claiming a VAT...

VAT recoverable on company director’s costs of defending a legal action

The Court of Appeal decision in Praesto Consulting concerned whether input VAT could be deducted from invoices concerning civil action against company directors, made out in the name of the director but paid for by the company. The Court of...

Input VAT recovery on property costs possible, even when associated with exempt accommodation supplies

The First tier Tribunal decision in Adullham Homes Housing Association has held that input VAT property maintenance costs required to deliver supplies of support services with accommodation, can be fully recoverable.  This was in contrast to HMRC’s view that the...

Increased complexity for input VAT recovery of an EU branch of an overseas EU company

The CJEU decision in Morgan Stanley has clarified how EU branches should be recovering input VAT on costs incurred in providing services to their overseas European head offices.  Unfortunately it is likely to make the VAT compliance process in each...

Provision of management services must be a ‘business’ to justify input VAT recovery on associated costs

The First tier Tribunal has held that in order to demonstrate that the supply of management services is an economic activity justifying input VAT recovery on associated costs, there should be an absence of contingency around the arrangements.  Evidence to...

Input VAT may be recoverable on abortive acquisition costs

The CJEU has held in the case of Ryan Air (case C-249/17), that there is a right to input VAT recovery in the context of a takeover bid, even if ultimately that economic activity [involvement in the management activity of...

Input VAT on HP company overheads passed on to customers

In the case of VWFS (case c-153/17) the CJEU has held that even where overhead costs of a hire purchase (HP) business are passed on to the customer as part of the finance charge for the transaction, when calculating the...