Speed Read: The ECJ in AB SKF has indicated that input VAT incurred on costs related to an exempt share sale may in some circumstances be recoverable. The input VAT may be attributable to the wider taxable business of the seller or the share sale might be treated as a TOGC both of which would result in input VAT being residual. It seems almost certain that HMRC will seek to restrict the decision and there will need to be further litigation to determine the boundaries between irrecoverable and recoverable VAT. Finally the decision also suggests that VAT incurred by a company on the sale of investment shares may in some circumstances...
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Speed Read: The ECJ in AB SKF has indicated that input VAT incurred on costs related to an exempt share sale may in some circumstances be recoverable. The input VAT may be attributable to the wider taxable business of the seller or the share sale might be treated as a TOGC both of which would result in input VAT being residual. It seems almost certain that HMRC will seek to restrict the decision and there will need to be further litigation to determine the boundaries between irrecoverable and recoverable VAT. Finally the decision also suggests that VAT incurred by a company on the sale of investment shares may in some circumstances...
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