In HMRC v Fortyseven Park Street [2019] EWCA Civ 849 (17 May 2019) the Court of Appeal reversing the UT’s decision found that the supply of a right to occupy a residence up to a maximum number of nights per year together with hotel-like services was not an exempt supply of land (VATA 1994 Sch 9 Group 1).
Fortyseven Park Street sold ‘fractional interests’ in residences at 47 Park Street in Mayfair. 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...
