The Court of Appeal has overturned earlier tribunal decisions that allowed Hotel La Tour to recover VAT on the costs of selling shares to fund a new hotel. The court decided that the professional fees incurred had a direct link to the exempt sale of shares, and therefore VAT is not recoverable. Hotel La Tour appealed to recover VAT of £76,000 on professional services related to the sale of shares, but HMRC disallowed the recovery. The earlier tribunals had found in favor of Hotel La Tour, but the Court of Appeal unanimously decided against it.
Source RSM
Latest Posts in "United Kingdom"
- The UK Should Lower or Abolish, Not Raise, Its VAT Registration Threshold
- UK Should Lower or Abolish VAT Threshold to Boost Small Business Growth and Efficiency
- Lowering VAT Threshold Risks Breaching Labour’s Manifesto, Warns Self-Employed Association
- UK VAT Threshold Debate: Growth-Boosting Increase or Revenue-Raising Decrease at Autumn Budget?
- Chancellor Proposes Raising VAT Registration Threshold to £100,000 to Boost UK Economy
