In Sveda, the CJEU held that a period of free public use of a path did not prevent recovery of input VAT on its construction costs. In DPAS, the UT partly allowed HMRC’s appeal against the decision of the FTT in relation to the treatment of services provided by a dental plan provider, but a final decision on whether the services are VAT exempt was postponed pending the CJEU decisions in Bookit II and NEC. HMRC has announced a new measure that means awards of interest made in respect of common law restitutionary claims based on a mistake of law (including compound interest claims) will be subject to a special corporation tax rate of 45%. The European Commission has published explanatory notes relating to the place of supply of services connected with immovable property.
