Hotel granted the luxury of VAT recovery on a sale of shares to raise funds

Businesses involved in mergers and acquisitions are accustomed to jumping through the necessary hoops to confirm that they are entitled to recover VAT on the costs of acquiring a new subsidiary. However, a recent tribunal appeal has looked at a corporate finance transaction from the seller’s point of view, considering whether a holding company was eligible to reclaim VAT incurred in the course of selling the shares of a subsidiary company to a new owner.

Source RSM

See also

• FTT Hotel la Tour Limited – December Tribunal Confirms VAT incurred on costs of selling a subsidiary is recoverable
• FTT: Sale of shares, recovery of VAT on professional services (Hotel La Tour Ltd)

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