Input tax reclaimed on supplies received by associated company
In Hawes & Curtis Ltd v HMRC (TC02415 – 20 December) a company (L) which was not registered for VAT was the lessee of several shops which were occupied by an associated company (H). H reclaimed input tax on the payments. HMRC rejected the claim on the basis that the supplies were made to L rather than to H. The tribunal dismissed H’s appeal against this decision. Judge Cornwell-Kelly held that ‘since (L) was not at the material times registered for VAT and had not opted to tax property rents it could not pass on the right to deduct tax on the rents to the taxpayer company’.
Input tax reclaimed on supplies received by associated company
In Hawes & Curtis Ltd v HMRC (TC02415 – 20 December) a company (L) which was not registered for VAT was the lessee of several shops which were occupied by an associated company (H). H reclaimed input tax on the payments. HMRC rejected the claim on the basis that the supplies were made to L rather than to H. The tribunal dismissed H’s appeal against this decision. Judge Cornwell-Kelly held that ‘since (L) was not at the material times registered for VAT and had not opted to tax property rents it could not pass on the right to deduct tax on the rents to the taxpayer company’.
