- The UK Supreme Court ruled that VAT on professional fees for selling shares cannot be recovered if the sale is an exempt transaction.
- Hotel La Tour Ltd’s attempt to reclaim VAT on fees related to a subsidiary share sale was denied, confirming HMRC’s position.
- The Court found the fees were directly linked to the exempt share sale, not to the company’s overall taxable activities.
- The Supreme Court agreed lower tribunals had misapplied case law and rejected arguments based on recent ECJ decisions.
- The company’s appeal was dismissed, confirming that VAT on such share sale costs is not deductible.
Source: vatabout.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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