VAT on Maintenance Trust Companies’ Supplies Not Exempt: Places for People Homes Ltd v HMRC 2025

• Places for People Homes Ltd lost its appeal against HMRC; supplies by maintenance trust companies (MTCs) for 25 blocks of flats are taxable, not exempt as supplies of land.
• The tribunal found that MTCs supply maintenance services to the Lessors (property owners), not the Lessees (tenants), despite being parties to the leases.
• Supplies of maintenance services by MTCs and supplies of land by Lessors are separate for VAT purposes; maintenance services cannot be treated as exempt supplies of land.
• The tribunal also ruled that staff costs incurred by MTCs are not disbursements for VAT purposes, as MTCs are not acting as agents for the Lessors.

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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