VAT Recovery on Shares Sale: Impact of Hotel La Tour Decision on Fundraising Transactions

• UK Court of Appeal’s decision in Hotel La Tour has dashed hopes of recovering VAT on deal fees in share sales
• Hotel La Tour sold a subsidiary to raise funds for a new hotel development, seeking to recover VAT on fees
• Court of Appeal ruled that VAT can only be recovered if there is a direct link to taxable activity, not exempt transactions
• Decision may lead to further litigation on recoverability of VAT on deal fees
• Interpretation of CJEU’s decision in SKF is central to the Court of Appeal’s ruling
• Decision may mark a rift between UK and EU case law on VAT recovery on share sales

Source: europeantax.blog

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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