In one of Sir Stephen Oliver’s last decisions the Upper Tribunal has for the first time dealt definitively with the Capital Goods Scheme (CGS) under the VAT Regulations SI 1995/2518.
Facts of the case
Gateshead Talmudical College (Gateshead) was a Yeshiva which provided educational services and the services it supplied were exempt for VAT purposes. On 1 November 1996 Gateshead granted a lease of its premises (the Lease) to Starburst Properties Ltd (Starburst) which then on the same day granted a sublease of the premises back to Gateshead (the Sublease).
Gateshead registered for VAT describing its business as property letting and both Gateshead and Starburst opted to tax the premises...
