In Kings Leisure v HMRC [2016] UKFTT 84 (4 February 2016) the FTT found that input tax incurred in the construction of bases for mobile homes was not recoverable.
Kings Leisure owned a mobile home park. It contracted out the building of bases for the mobile homes. The purchaser of a mobile home would enter into a tripartite agreement which provided that Autoclassic (a company associated with Kings Leisure) was to supply the mobile home in exchange for the agreed price and that Kings Leisure was to enter into a separate licence agreement with the purchaser for the purchaser’s use of the pitch. The two companies were not part of the same VAT group. The question was whether the input tax incurred by Kings Leisure on the construction of the pitches formed a cost component of onward taxable supplies to Autoclassic.
The FTT...
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In Kings Leisure v HMRC [2016] UKFTT 84 (4 February 2016) the FTT found that input tax incurred in the construction of bases for mobile homes was not recoverable.
Kings Leisure owned a mobile home park. It contracted out the building of bases for the mobile homes. The purchaser of a mobile home would enter into a tripartite agreement which provided that Autoclassic (a company associated with Kings Leisure) was to supply the mobile home in exchange for the agreed price and that Kings Leisure was to enter into a separate licence agreement with the purchaser for the purchaser’s use of the pitch. The two companies were not part of the same VAT group. The question was whether the input tax incurred by Kings Leisure on the construction of the pitches formed a cost component of onward taxable supplies to Autoclassic.
The FTT...
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