- Recent Court of Appeal judgment in Hotel La Tour Limited case has implications for VAT recovery on advisers’ fees related to share sales
- Ruling reinforces need for direct link between input VAT and share sale or company’s business activities for recovery to be permissible
- Background of the Hotel La Tour case involving sale of shares to raise capital and VAT on advisers’ fees
- HMRC rejected VAT recovery claim, leading to series of judicial reviews
- Court of Appeal ruled in favor of HMRC, stating costs were directly linked to exempt share sale making input VAT irrecoverable
- Implications for businesses include limitations on VAT recovery, consideration of protective claims, and review of past transactions.
Source: deeksvat.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.
