Lease of nursing home: whether separate supply of facilities
In Sunnyside Property Company Ltd v HMRC (TC02839 – 29 August) a company (SN) operated a nursing home. In 2003 the ownership of the premises was transferred to a newly-incorporated associated company (SC) which leased them back to SN. SC subsequently reclaimed input tax on the refurbishment of the premises. HMRC rejected the claim on the basis that the input tax was wholly attributable to exempt supplies. SC appealed contending that it was making separate standard-rated supplies of facilities in addition to its exempt supplies of a lease of the premises. The First-tier Tribunal rejected this contention and dismissed the appeal holding that SC was making a single composite exempt supply of property and services and that none of the input tax was attributable to taxable supplies.
Lease of nursing home: whether separate supply of facilities
In Sunnyside Property Company Ltd v HMRC (TC02839 – 29 August) a company (SN) operated a nursing home. In 2003 the ownership of the premises was transferred to a newly-incorporated associated company (SC) which leased them back to SN. SC subsequently reclaimed input tax on the refurbishment of the premises. HMRC rejected the claim on the basis that the input tax was wholly attributable to exempt supplies. SC appealed contending that it was making separate standard-rated supplies of facilities in addition to its exempt supplies of a lease of the premises. The First-tier Tribunal rejected this contention and dismissed the appeal holding that SC was making a single composite exempt supply of property and services and that none of the input tax was attributable to taxable supplies.
