In Newey, the Upper Tribunal considered the CJEU’s preliminary ruling in the case and concluded that it said ‘nothing new’. Warren J upheld the FTT’s decision in favour of the taxpayer. A week later, in Pendragon, the Supreme Court pronounced on the nature and application of the abuse principle in VAT cases. Undertaking a careful analysis of Halifax, the court found for HMRC. It seems likely that the decision in Pendragon will encourage HMRC and the tribunals to take a more critical view of VAT planning arrangements and be less easy to persuade of the existence of a commercial motive.
Does the Supreme Court judgment in Pendragon represent a shift of emphasis? Can offshore schemes of the Newey-type scheme survive? Michael Conlon QC and Rebecca Murray (Temple Tax Chambers) examine the impact of recent case decisions on VAT planning arrangements.
In Newey, the Upper Tribunal considered the CJEU’s preliminary ruling in the case and concluded that it said ‘nothing new’. Warren J upheld the FTT’s decision in favour of the taxpayer. A week later, in Pendragon, the Supreme Court pronounced on the nature and application of the abuse principle in VAT cases. Undertaking a careful analysis of Halifax, the court found for HMRC. It seems likely that the decision in Pendragon will encourage HMRC and the tribunals to take a more critical view of VAT planning arrangements and be less easy to persuade of the existence of a commercial motive.
Does the Supreme Court judgment in Pendragon represent a shift of emphasis? Can offshore schemes of the Newey-type scheme survive? Michael Conlon QC and Rebecca Murray (Temple Tax Chambers) examine the impact of recent case decisions on VAT planning arrangements.