Beavis and VAT on parking fines

It is rare for a tax case to influence the general law, and even rarer for a case on general principles to have an impact on tax. In a landmark ruling, the Supreme Court has clarified the enforceability of penalty clauses. This may cause HMRC to re-examine whether excess parking charges are within the scope of VAT. And this could be bad news for car park operators and for the motorist.