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Recovery of Residual Input Tax in VAT: Dual Use and Standard Method Override

  • The case is between The Commissioners for His Majesty’s Revenue and Customs and Hippodrome Casino Ltd.
  • The issue is whether the First-tier Tribunal (FtT) erred in not determining if there was a dual use of taxable supplies of entertainment and hospitality for the non-taxable supplies of gaming in the casino.
  • The hearing took place on 3-4 October 2023 at the Rolls Building in London.
  • The judgment was delivered on 29 January 2024.
  • The appellants were represented by Matthew Donmall, counsel, instructed by the General Counsel and Solicitor to His Majesty’s Revenue and Customs.
  • The respondent was represented by Andrew Hitchmough KC and Ronan Magee, counsel, instructed by PricewaterhouseCoopers LLP.
  • The case involves the recovery of residual input tax.
  • The question is whether a standard method override, using allocated floorspace, provides a more precise determination of economic use and the proportion of recoverable input tax compared to the standard method using proportion of turnover for taxable and non-taxable supplies.


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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