David Jamieson (Baker McKenzie) provides an in-depth review of the Court of Appeal judgment in Prudential and assesses the potential fees are invoiced and paid after changes in VAT group membership.
A fundamental principle of VAT groups is that transactions between the members are disregarded. The Court of Appeal in The Prudential Assurance Company Ltd v HMRC [2024] EWCA Civ 300explored the limits of this principle in the context of an invoice being issued or payment being made at a time when the parties were no longer members of the same VAT group.
The Court of Appeal did not reach its judgment with ease: the case was described as being ‘a difficult one’ (Nugee LJ) involving ‘difficult questions’ (Newey LJ) with the Vice-President noting that he ‘[had] not found the point straightforward’ (Underhill LJ). These issues resulted in a split decision in favour of HMRC....
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David Jamieson (Baker McKenzie) provides an in-depth review of the Court of Appeal judgment in Prudential and assesses the potential fees are invoiced and paid after changes in VAT group membership.
A fundamental principle of VAT groups is that transactions between the members are disregarded. The Court of Appeal in The Prudential Assurance Company Ltd v HMRC [2024] EWCA Civ 300explored the limits of this principle in the context of an invoice being issued or payment being made at a time when the parties were no longer members of the same VAT group.
The Court of Appeal did not reach its judgment with ease: the case was described as being ‘a difficult one’ (Nugee LJ) involving ‘difficult questions’ (Newey LJ) with the Vice-President noting that he ‘[had] not found the point straightforward’ (Underhill LJ). These issues resulted in a split decision in favour of HMRC....
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