J&B Massey (t/a Hilden Park Partnership) v HMRC (and related appeal)

In J&B Massey (t/a Hilden Park Partnership) v HMRC (and related appeal) (TC02787 – 26 July) a partnership which owned a golf club transferred its business to two companies which claimed that their supplies qualified for exemption from VAT under VATA 1994 Sch 9 Group 10. (Both companies subsequently went into liquidation.) HMRC issued an assessment on the partnership on the basis that the scheme was an abuse of law within the Halifax principle so that the partnership should be deemed to have continued to make the relevant supplies. The FTT dismissed the partnership’s appeal applying the principles laid down in HMRC v The Atrium Club Ltd (2010 STC 1493). Judge Mosedale held that ‘there would be an abusive tax advantage if the appellants received covert profits from a company which made supplies which were treated as exempt on the basis that it was...