The Queen on the application of Vacation Rentals (UK) v HMRC

In The Queen on the application of Vacation Rentals (UK) v HMRC [2018] UKUT 383 (22 November 2018) the UT allowed a claim for judicial review and quashed HMRC’s decision not to apply a business brief.

Vacation Rentals acted as a booking agent between holidaymakers and property owners. This involved collecting payment from holidaymakers on behalf of the property owners. When payment was made by credit or debit card it charged an additional fee for ‘card handling services’. In Bookit [2006] STC 1367 the Court of Appeal clarified the treatment of such fees holding that they were exempt services; and following the decision HMRC issued Business Brief (BB) 18/06. Vacation Rentals relied on the brief to treat its supplies as exempt; however HMRC refused to apply the terms of the brief to these supplies.

The UT found that the guidance in BB 18/06 was...

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