- The FTT partially allowed an appeal against a VAT assessment related to security bonds paid by trainee pilots.
- The security bond was considered payment for training and subject to VAT.
- Training conducted outside the UK, specifically in New Zealand, was outside the scope of UK VAT.
- An agreement under section 85 of the Value Added Tax Act 1994 was acknowledged.
- 27.4 percent of the payments were deemed for training outside the UK and not subject to VAT.
- The appeal was allowed in part to account for this adjustment, but otherwise dismissed.
Source: claritaxnews.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.
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