In Lady Henrietta Pearson v HMRC [2014] UKFTT 890 – 11 September 2014 the FTT found that HMRC must repay the amount decided by the FTT regardless of the fact that the taxpayer was not entitled to it.
Following a first hearing in front of the FTT Lady Pearson had become entitled to recover £40 233 under VATA 1994 s 35 on the basis that she had undertaken a residential conversion under the DIY housebuilders scheme.
However HMRC only refunded £12 591 contending that the liability to refund VAT under s 35 applied only to VAT properly chargeable and that the suppliers should have charged VAT at 5% rather than the full rate. HMRC therefore refunded 5% suggesting that Lady Pearson should recover the balance from her suppliers who by now would be unable to...
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In Lady Henrietta Pearson v HMRC [2014] UKFTT 890 – 11 September 2014 the FTT found that HMRC must repay the amount decided by the FTT regardless of the fact that the taxpayer was not entitled to it.
Following a first hearing in front of the FTT Lady Pearson had become entitled to recover £40 233 under VATA 1994 s 35 on the basis that she had undertaken a residential conversion under the DIY housebuilders scheme.
However HMRC only refunded £12 591 contending that the liability to refund VAT under s 35 applied only to VAT properly chargeable and that the suppliers should have charged VAT at 5% rather than the full rate. HMRC therefore refunded 5% suggesting that Lady Pearson should recover the balance from her suppliers who by now would be unable to...
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:
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