In Folkestone Harbour v HMRC [2015] UKFTT 101 (2 March) the FTT found that a fountain built as part of a development project but located away from it had been built for business purposes. HMRC had disallowed input tax incurred in the construction of a pavement fountain on the ground that the nexus between the fountain and the main development of the Folkestone Harbour – where taxable supplies would be made – was insufficient. HMRC accepted that Folkestone Harbour was a property developer and a taxable trader. It considered however that the fountain built away from the main development site had not been built for business purposes.
The FTT observed that the Folkestone seafront had suffered from a considerable decline and that the fountain had always been part of the concept masterplan. It also noted that the...
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In Folkestone Harbour v HMRC [2015] UKFTT 101 (2 March) the FTT found that a fountain built as part of a development project but located away from it had been built for business purposes. HMRC had disallowed input tax incurred in the construction of a pavement fountain on the ground that the nexus between the fountain and the main development of the Folkestone Harbour – where taxable supplies would be made – was insufficient. HMRC accepted that Folkestone Harbour was a property developer and a taxable trader. It considered however that the fountain built away from the main development site had not been built for business purposes.
The FTT observed that the Folkestone seafront had suffered from a considerable decline and that the fountain had always been part of the concept masterplan. It also noted that the...
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