Fortyseven Park Street v HMRC

In Fortyseven Park Street v HMRC [2016] UKFTT 569 (11 August 2016) the FTT found that the supplies of ‘fractional interests’ in a property were not exempt supplies of land as they fell within the hotel accommodation exclusion (VATA 1994 Sch 9 Group 1 note 1(d)).

Fortyseven sold ‘fractional interests’ in residences at 47 Park Street in Mayfair (the ‘property’). In return for a substantial upfront price a purchaser acquired the ability to occupy a residence at the property of a specified category for a maximum number of nights in each year until 31 October 2050 and to access a range of related benefits during that period. These included the option for the purchaser to exchange stays at the property for stays in other properties; and to realise rental income in respect of a residence of the specified type. Fortyseven argued that it provided exempt licences to...