In Mr and Mrs Hills v HMRC [2016] UT 189 (25 April 2016) the UT found that a sale of property was subject to VAT as the option to tax had been validly exercised.
The issue was whether the sale of a unit in a business park to Mr and Mrs Hills by the trustee of a self-invested pension plan (SIPP) was chargeable to VAT at the standard rate. On 6 August 2010 the trustee had belatedly notified HMRC that it had opted to tax the property from 14 April 2004. The effective date was then amended and HMRC formally accepted the trustee’s late notification with an effective date of 30 March 2004.
The Hills contended that the option was invalid as the trustee should have sought prior permission from HMRC. The UT found that VATA 1994 Sch 10 para 3(9) had only required prior permission of HMRC...
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