Everyone thought the position was clear: VAT incurred on a share sale that was an exempt supply was not recoverable whereas VAT incurred on a share sale that was a VAT ‘nothing’ was recoverable. Then SKF came along and suggested that even with VAT incurred on a share sale that was an exempt supply, there were circumstances where it would be recoverable. This was confirmed by the First-tier Tribunal and the Upper Tribunal, which both held that Hotel La Tour was able to recover the VAT it incurred on a share sale that was an exempt supply. But HMRC appealed to the Court of Appeal and the Court of Appeal disagreed.
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Everyone thought the position was clear: VAT incurred on a share sale that was an exempt supply was not recoverable whereas VAT incurred on a share sale that was a VAT ‘nothing’ was recoverable. Then SKF came along and suggested that even with VAT incurred on a share sale that was an exempt supply, there were circumstances where it would be recoverable. This was confirmed by the First-tier Tribunal and the Upper Tribunal, which both held that Hotel La Tour was able to recover the VAT it incurred on a share sale that was an exempt supply. But HMRC appealed to the Court of Appeal and the Court of Appeal disagreed.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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