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"
- FTT Rules Pre-registration VAT Claim Based on Post-registration Use for Aspire Community Services
- VAT: Cattle Bed and Breakfast Service Is Single Standard-Rated Supply, Appeal Dismissed
- HMRC Requires Online Registration for Tax Advisers’ Agent Services Account Starting May 2026
- FTT Upholds HMRC Refusal of Input VAT Recovery Without Invoices in Mochars Ltd Case
- Tribunal Rules EV Charging Points Qualify for Reduced 5% VAT Rate Under Domestic Use Provision
