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Pending appeals

Pendragon plc v HMRC (and related appeals)

The Upper Tribunal has begun hearing HMRC’s appeal against the First-tier Tribunal decision in Pendragon plc v HMRC (and related appeals) [2010] SFTD 1; [2009] UKFTT 192 (TC) TC00147.

An accountancy firm advised a group of companies to enter into a complex scheme with the intention of only accounting for VAT on its profit on ‘demonstrator cars’ rather than on their full sale price. Four associated ‘dealership’ companies sold various ‘demonstrator cars’ to three associated ‘captive leasing companies’ under leaseback arrangements.

The ‘captive leasing companies’ assigned the benefit of the lease agreements and the underlying cars to a Jersey bank (S) in return for a substantial 45-day loan facility.

A month after these transactions another associated company (PD) entered into an agreement with S to acquire its...

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