Supreme Court Rules Against VAT Recovery on Hotel La Tour’s Fundraising Share Sale Costs

• Hotel La Tour Ltd (HLT) sought to recover VAT on costs related to a share sale used to fund a new hotel.
• HMRC denied VAT recovery, arguing the costs related to an exempt share sale.
• The Supreme Court upheld HMRC’s position, ruling the costs were directly linked to the exempt share sale, not the overall business.
• The Court rejected arguments based on recent CJEU case law and the purpose of the transaction.
• HLT’s appeal was dismissed, confirming VAT was not deductible on these costs.

Source: taxscape.deloitte.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.

---

---