The Court of Appeal (CA) decision in HMRC v Hotel La Tour Ltd [2024] EWCA Civ 564 is an important one on the recoverability of input VAT incurred in connection with share sales. In overturning the decision of the Upper Tribunal (UT) the CA has rejected the argument that there is a different test in fundraising scenarios that nuances the normal ‘direct and immediate’ test for input VAT recovery.
The CA’s conclusion is that the ‘direct and immediate’ test originally set out in BLP (Case C-4/94) remains the fundamental starting point and while there has...
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The Court of Appeal (CA) decision in HMRC v Hotel La Tour Ltd [2024] EWCA Civ 564 is an important one on the recoverability of input VAT incurred in connection with share sales. In overturning the decision of the Upper Tribunal (UT) the CA has rejected the argument that there is a different test in fundraising scenarios that nuances the normal ‘direct and immediate’ test for input VAT recovery.
The CA’s conclusion is that the ‘direct and immediate’ test originally set out in BLP (Case C-4/94) remains the fundamental starting point and while there has...
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