VAT Exemption for Management Trustee Services in Residential Flats: Places for People v HMRC

• The case concerns the VAT treatment of service charges for maintenance services provided by maintenance trust companies (MTCs) in residential blocks of flats.
• The main issue is whether the supplies made by the MTCs, as management trustee companies party to tripartite leases, are exempt supplies of land under Schedule 9, Group 1 of the VAT Act 1994.
• The MTCs collect maintenance contributions from lessees, retain a fee, and use the remainder for property maintenance via a trust fund.
• The tribunal considered whether these supplies should be treated as taxable or exempt for VAT purposes.

Source: bailii.org

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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