Lee Squires and Fiona Bantock examine four recent VAT case decisions that matter
Key recent VAT developments are as follows.
In McCarthy & Stone Developments Ltd [2013] UKFTT 727 (TC) the taxpayer had granted a long lease of a new residential apartment which was zero-rated for VAT purposes. Under the sale agreement the buyer was required to pay a capital contribution towards the cost of purchasing furniture and equipment for use in the communal areas of the building in addition to the premium for the lease. The question for the First-tier Tribunal (FTT) was whether the provision of the furnished communal areas was part of a single zero-rated supply of residential accommodation.
