In The Hurlingham Club v HMRC [2015] UKFTT 76 (12 February 2015) the FTT found that a special method was not appropriate to determine the club’s allocation of input tax.
The club was partially exempt and was therefore only entitled to partial recovery of input tax (VATA 1995 s 25). Traders must use the ‘standard method’ to determine their creditable input tax; however HMRC has a discretion to allow a ‘special method’. The club was appealing against HMRC’s decision not to allow a special method based on floor space to be used in relation to the clubhouse.
The FTT rejected the club’s suggested special method given that:
over a third of the floor area was excluded from the special method and allocated to ‘mixed use’ or an ‘excluded’ category rendering the special method no more precise than...
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In The Hurlingham Club v HMRC [2015] UKFTT 76 (12 February 2015) the FTT found that a special method was not appropriate to determine the club’s allocation of input tax.
The club was partially exempt and was therefore only entitled to partial recovery of input tax (VATA 1995 s 25). Traders must use the ‘standard method’ to determine their creditable input tax; however HMRC has a discretion to allow a ‘special method’. The club was appealing against HMRC’s decision not to allow a special method based on floor space to be used in relation to the clubhouse.
The FTT rejected the club’s suggested special method given that:
over a third of the floor area was excluded from the special method and allocated to ‘mixed use’ or an ‘excluded’ category rendering the special method no more precise than...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
