Julia Lloyd and Chris Bates review the Court of Appeal decision in BAA, in which the court denied the recoverability of input VAT on professional fees incurred on a takeover.
The Court of Appeal case of BAA Ltd v HMRC [2013] EWCA Civ 112 concerned the acquisition of BAA PLC (BAA) by a Ferrovial led investment consortium. A new company (Bidco) was set up in March 2006 to acquire BAA. Prior to the takeover in June 2006 Bidco entered into various finance agreements. After the takeover it joined the BAA VAT group in September 2006. It incurred fees (together with VAT) of investment banks and lawyers as well as others.
The representative member of the VAT group...
