Realreed Ltd: VAT implications for serviced accommodation at Chelsea Cloisters – FTT ruling

• Realreed Ltd owns Chelsea Cloisters, which provides serviced accommodation
• Ancillary services are provided by Chelsea Cloisters Services Ltd (CCSL)
• Realreed treated supplies of the flats as exempt from VAT
• The First-tier Tribunal accepted that the services were provided by CCSL
• The services should be taken into account when considering if Chelsea Cloisters is similar to a hotel
• The FTT concluded that Chelsea Cloisters was in potential competition with the hotel sector
• Realreed’s supplies of the flats were subject to VAT
• Realreed’s appeal against a £4.8m assessment was dismissed.

Source: taxscape.deloitte.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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