- The Hippodrome Casino Limited (HCL) attempted to use the standard method override based on floor space to calculate the amount of VAT that can be recovered.
- The standard method override allows for a different calculation of VAT recovery if the standard method does not provide a fair and reasonable result based on actual use.
- HCL, which made VATable supplies of hospitality and entertainment and exempt supplies of gaming, was partially exempt.
- HMRC argued that the floor space method used by HCL was flawed because the hospitality and entertainment areas were also used to support and promote gaming, and had dual use.
- The tribunal concluded that the floor space method used by HCL was fundamentally flawed, as the hospitality and entertainment areas had significant dual use for gaming, and HMRC was correct in rejecting it.
Source Accountingweb
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