- The Supreme Court in HMRC v Hotel La Tour Ltd [2025] UKSC 46 ruled that VAT on professional fees related to a share sale is not recoverable.
- The Court clarified that share sales are generally VAT exempt, and the purpose of raising finance does not override this exemption.
- VAT deduction requires a “direct and immediate link” to VATable supplies, which was not present in this case.
- The Court also clarified that VAT grouping does not change the VAT treatment of share sales or allow related professional fees to be attributed to other VATable activities.
Source: dwfgroup.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.
Latest Posts in "United Kingdom"
- VAT: Cattle Bed and Breakfast Service Is Single Standard-Rated Supply, Appeal Dismissed
- HMRC Requires Online Registration for Tax Advisers’ Agent Services Account Starting May 2026
- FTT Upholds HMRC Refusal of Input VAT Recovery Without Invoices in Mochars Ltd Case
- Tribunal Rules EV Charging Points Qualify for Reduced 5% VAT Rate Under Domestic Use Provision
- Who Can Reclaim Import VAT in the UK? HMRC Rules on Ownership and Importer of Record
