Mark Watterson and Gary Barnett (Simmons & Simmons) examine the decision in Norseman Gold where the Upper Tribunal denied input VAT recovery to a holding company providing management services for lack of consideration.
Input VAT recovery by holding companies and bid vehicles has proven a difficult area of VAT law. Despite 25 years having passed since the CJEU judgment in Polysar Investments Netherlands BV v Inspecteur der Invoerrechten en Accijnzen Arnhem (Case C-60/90) it still gives rise to problems when applied to a range of practical situations.
The VAT recovery position of holding companies has been closely scrutinised in recent years. The Court of Appeal decision in BAA Ltd v HMRC [2013] STC 752 raised as many questions as it answered and was followed by restrictive HMRC guidance in the form of Revenue & Customs Brief 32/2014. In...
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Mark Watterson and Gary Barnett (Simmons & Simmons) examine the decision in Norseman Gold where the Upper Tribunal denied input VAT recovery to a holding company providing management services for lack of consideration.
Input VAT recovery by holding companies and bid vehicles has proven a difficult area of VAT law. Despite 25 years having passed since the CJEU judgment in Polysar Investments Netherlands BV v Inspecteur der Invoerrechten en Accijnzen Arnhem (Case C-60/90) it still gives rise to problems when applied to a range of practical situations.
The VAT recovery position of holding companies has been closely scrutinised in recent years. The Court of Appeal decision in BAA Ltd v HMRC [2013] STC 752 raised as many questions as it answered and was followed by restrictive HMRC guidance in the form of Revenue & Customs Brief 32/2014. In...
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