In Michael Brinkard v HMRC (TC02998 – 8 October 2013) the taxpayer had failed to account for input tax on the sale of properties on which he had elected to waive the exemption. Mr Brinkard had purchased land and then developed it into small industrial units which he had successfully sold in the form of 999 year leases. He had been advised to register for VAT and to waive the exemption in order to recover any VAT incurred on the cost of the development.
Unfortunately half of the proceeds of the sale were not accounted for by the taxpayer’s lawyers. As a direct result Mr Brinkard did not have sufficient funds to pay the input tax due under the grant of the leases – except one which had already been accounted for. HMRC had mistakenly registered and then de-registered a company owned by the taxpayer and so...
