In Gordon Lye v HMRC [2015] UKFTT 0206 (13 May 2015) the FTT accepted that a partnership had ceased trading.
It was accepted that the partnership had been terminated by 18 August 2010. The issue was whether the partnership had been terminated before that date.
The FTT noted that the effect of VATA 1994 s 45(2) was that a partnership between two people was to be treated as remaining in existence until it actually ceased and notice of cessation was given to HMRC.
The FTT accepted Mr Lye’s evidence that the notice of cessation had been posted to HMRC on 3 May 2008. Given that VATA 1994 s 98 allowed the posting of such notices the notice was deemed to have been received in the ordinary course of the post on 5 May 2008 (Interpretation Act 1978 s 7).
The remaining issue was whether the partnership had actually...
