Court of Appeal Rules Against Hotel La Tour in VAT Recovery Case for Share Sale

• Hotel La Tour Ltd sold its existing hotel in Birmingham to fund a new hotel in Milton Keynes
• The company sought to recover VAT on marketing and legal costs associated with the sale
• HMRC denied VAT recovery, stating the costs related to an exempt share sale
• First-tier Tribunal and Upper Tribunal ruled in favor of the taxpayer, but Court of Appeal ruled in favor of HMRC
• The Court of Appeal found that the VAT costs were directly linked to the share sale, which was exempt for VAT purposes.

Source: taxscape.deloitte.com

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.

---

---