Darren Mellor-Clark (Pinsent Masons) sets out the circumstances when holding companies can make a VAT recovery under the revised guidance.
The issue of VAT recovery by holding companies in relation to corporate transactions has always been a bit of a minefield. HMRC has taken a tough line and there have been a number of cases. VAT recovery was denied in cases such as BAA [2013] EWCA Civ 112 African Consolidated Resources [2014] UKFTT 580 and Norseman Gold [2016] UKUT 69 (TCC). In 2015 the CJEU decisions of Larentia + Minerva and Marenave Schiffahrts (Cases C-108/14 and C-109/14) were more favourable to taxpayers as was the 2016 FTT case of Heating Plumbing Supplies [2016] UKFTT 753. These decisions were not consistent with the view previously taken by HMRC but it has taken until now for HMRC to issue revised guidance in the form of an...
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Darren Mellor-Clark (Pinsent Masons) sets out the circumstances when holding companies can make a VAT recovery under the revised guidance.
The issue of VAT recovery by holding companies in relation to corporate transactions has always been a bit of a minefield. HMRC has taken a tough line and there have been a number of cases. VAT recovery was denied in cases such as BAA [2013] EWCA Civ 112 African Consolidated Resources [2014] UKFTT 580 and Norseman Gold [2016] UKUT 69 (TCC). In 2015 the CJEU decisions of Larentia + Minerva and Marenave Schiffahrts (Cases C-108/14 and C-109/14) were more favourable to taxpayers as was the 2016 FTT case of Heating Plumbing Supplies [2016] UKFTT 753. These decisions were not consistent with the view previously taken by HMRC but it has taken until now for HMRC to issue revised guidance in the form of an...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
