- The UK First-Tier Tribunal has made a ruling on the application of the Tour Operators Margin Scheme (TOMS) for businesses that buy and resell designated travel services.
- TOMS can apply to any business that does this, not just travel companies.
- The case in question involved a taxpayer who leased apartments from third-party landlords, furnished them and sublet them as short-term serviced accommodation to travellers.
- The question was whether this constituted “material alteration” and therefore exempt from TOMS.
- The Tribunal ruled that it did not constitute material alteration, meaning TOMS applies.
- The outcome may have implications for other businesses in similar situations, and it remains to be seen whether HMRC will appeal the decision.
Source Evelyn Partners
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