In Field Fisher Waterhouse LLP v HMRC (CJEU Case C-392/11) a firm of solicitors leased serviced office accommodation. Its landlords treated their supplies as exempt in accordance with HMRC’s advice. The firm appealed contending that the service charges should be treated as taxable supplies (so that it should be allowed to reclaim input tax). The Tribunal directed that the case should be referred to the CJEU. The CJEU held that ‘the leasing of immovable property and the supplies of services linked to that leasing such as those at issue in the main proceedings may constitute a single supply from the point of view of value added tax. The fact that the lease gives the landlord the right to terminate it if the tenant fails to pay the service charges supports the view that there is a single...
