The recent Upper Tribunal (UT) decision in the case of The Commissioners For His Majesty’s Revenue And Customs v Hotel La Tour Ltd [2023] UKUT 00178 (TCC) upheld the First-tier Tribunal (FTT) decision in 2021. Both Tribunals’ decisions were in favour of the taxpayer on the core issue of whether the sale of shares by an active holding company, which were demonstrably intended to generate proceeds to reinvest into a taxable business, constituted overhead costs of the business. As a result, the VAT incurred on sell-side costs was recoverable.
Source: AlvarezandMarsal
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