In Lady Henrietta Pearson v HMRC [2014] UKFTT 890 – 11 September 2014 the FTT found that HMRC must repay the amount decided by the FTT regardless of the fact that the taxpayer was not entitled to it.
Following a first hearing in front of the FTT Lady Pearson had become entitled to recover £40 233 under VATA 1994 s 35 on the basis that she had undertaken a residential conversion under the DIY housebuilders scheme.
However HMRC only refunded £12 591 contending that the liability to refund VAT under s 35 applied only to VAT properly chargeable and that the suppliers should have charged VAT at 5% rather than the full rate. HMRC therefore refunded 5% suggesting that Lady Pearson should recover the balance from her suppliers who by now would be unable to...
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In Lady Henrietta Pearson v HMRC [2014] UKFTT 890 – 11 September 2014 the FTT found that HMRC must repay the amount decided by the FTT regardless of the fact that the taxpayer was not entitled to it.
Following a first hearing in front of the FTT Lady Pearson had become entitled to recover £40 233 under VATA 1994 s 35 on the basis that she had undertaken a residential conversion under the DIY housebuilders scheme.
However HMRC only refunded £12 591 contending that the liability to refund VAT under s 35 applied only to VAT properly chargeable and that the suppliers should have charged VAT at 5% rather than the full rate. HMRC therefore refunded 5% suggesting that Lady Pearson should recover the balance from her suppliers who by now would be unable to...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
