Mike Lane and Zoe Andrews (Slaughter and May) review recent developments affecting the City.
Deposit-taking business involved exempt banking services
In ING Intermediate Holdings Ltd v HMRC [2017] EWCA Civ 2111 the representative member of the ING VAT group wished to recover a proportion of VAT expenses incurred in connection with a deposit-taking business. Both the First-tier Tribunal (FTT) and the Upper Tribunal (UT) had found that the business consisted of more than simply receiving deposits and constituted the provision of exempt banking services. The Court of Appeal agreed.
ING had argued that the deposit-taking consisted of borrowing therefore not involving a VATable transaction by the borrower at all. However the FTT had found as a fact that the operation of the easy access deposit account involved more than just the bank taking a loan from the depositor. The provision of 24 hour telephone and internet...
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Mike Lane and Zoe Andrews (Slaughter and May) review recent developments affecting the City.
Deposit-taking business involved exempt banking services
In ING Intermediate Holdings Ltd v HMRC [2017] EWCA Civ 2111 the representative member of the ING VAT group wished to recover a proportion of VAT expenses incurred in connection with a deposit-taking business. Both the First-tier Tribunal (FTT) and the Upper Tribunal (UT) had found that the business consisted of more than simply receiving deposits and constituted the provision of exempt banking services. The Court of Appeal agreed.
ING had argued that the deposit-taking consisted of borrowing therefore not involving a VATable transaction by the borrower at all. However the FTT had found as a fact that the operation of the easy access deposit account involved more than just the bank taking a loan from the depositor. The provision of 24 hour telephone and internet...
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:
