In Marlow Rowing Club v HMRC [2020] UKUT 20 (TCC) (22 January 2020) the UT found that the taxpayer had a reasonable excuse for issuing an incorrect zero-rating certificate.
The taxpayer Marlow had issued a zero-rating certificate to a supplier of construction services. At the time that the certificate was issued the law was being litigated in Longridge [2016] EWCA Civ 930. Marlow had obtained advice from VAT accountants and counsel. Counsel’s opinion had noted that the Longridge appeal would need to succeed for Marlow to issue the certificate (it was in the FTT at the time Marlow issued the certificate) and the accountants had suggested that Marlow should seek HMRC’s view on the matter.
When Marlow came before the FTT Longridge had been decided in favour of HMRC. Marlow accepted that it had incorrectly issued a zero-rating certificate. However it argued that it had a...
