In Balhousie Holdings Ltd v HMRC [2021] UKSC 11 (reported in Tax Journal 9 April 2021) the Supreme Court allowed the taxpayer’s appeal holding that a sale and leaseback was not the disposal of the taxpayer’s ‘entire interest’ in a care home. As a result HMRC was not entitled to clawback the benefit of the VAT zero-rating that had applied when the taxpayer acquired the home from a developer.
Why it matters: ‘Given the history of decisions going in favour of both the taxpayer and HMRC on Balhousie and the contemporaneous consideration of similar issues by the CJEU in Mydibel (Case C-201/18) the decision of the Supreme Court has been long awaited as a grand finale to the Balhousie odyssey with taxpayers wishing for some clarity on the application of the...
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