- Hippodrome Casino Ltd operated a casino business with taxable and non-taxable supplies
- HMRC rejected HCL’s claim to deduct input VAT based on the standard method override
- FTT found in favor of HCL, but HMRC appealed to the Upper Tribunal
- UT overturned FTT decision, stating that the floor space SMO method was flawed
- UT found that areas in HCL’s premises were used for both taxable and non-taxable supplies
- Businesses making both taxable and non-taxable supplies should be mindful of the ‘dual use’ argument and UT’s findings
Source: rpc.co.uk
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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