Realreed Ltd owns Chelsea Cloisters, which includes over 200 flats that are used to provide serviced accommodation. The services (dry-cleaning, linen changes, Wi-Fi, etc.) are provided by Chelsea Cloisters Services Ltd (an affiliated company), and Realreed has always treated its supplies of the flats (in isolation) as exempt from VAT. In 2019-20, HMRC issued assessments for £4.8 million on the basis that Realreed should have charged VAT (on the basis that the flats were similar to hotels).
Source: taxscape.deloitte.com
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