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.

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.