- CCML manages Chelsea Cloisters, a London property with 656 apartments.
- Realreed Limited owns the property.
- CCML did not register for VAT, claiming exemption under HMRC’s extra-statutory concession 3.18.
- HMRC registered CCML for VAT, claiming it provided standard-rated management services.
- The FTT lacked jurisdiction to apply extra-statutory concessions.
- The FTT would have found that CCML provided management services directly to leaseholders and that service charges were exempt.
- The FTT would have ruled HMRC’s decisions unlawful.
- The FTT concluded that CCML could have relied on EU law principles, leading to the same outcome.
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.
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