The UK’s FTT has decided that VAT incurred in selling shares may be recoverable if the proceeds will be used to support continuing taxable business
The UK First-tier Tribunal’s (FTT) decision in Hotel La Tour (UK FTT 451), which was released in December 2021, is the latest answer to the question of whether there are situations in which VAT on costs incurred in selling shares may be recoverable. Businesses which carry on taxable activities for VAT purposes and have reinvested proceeds from selling shares into their continuing business activities should consider whether they were entitled to recover VAT incurred on the costs involved in selling the shares. If so, it may be possible to submit a claim to HMRC for under-recovered VAT, subject to the usual four-year time limit.
Source KPMG
Latest Posts in "United Kingdom"
- Creating a level playing field for UK small businesses by reforming VAT collection
- Interest Payable on VAT Element of Commercial Debt Under Late Payment of Commercial Debts Act 1998
- Addressing Unfair VAT Repayment and Interest Rates: CIOT and ATT Autumn Budget 2025 Representation
- UK Tribunal Clarifies Input VAT Deductions and HMRC Discretion Under VAT Regulations 1995
- UK Tribunal Rules Company Cannot Reclaim Input VAT Due to Pre-Registration Purchases and Invalid Invoices
