Vacation Rentals: reliance on HMRC’s business briefs

In R (on application of Vacation Rentals (UK) (formerly known as The Hoseasons Group Ltd)) v HMRC, the tribunal agreed that Vacation Rentals could rely on Business Brief 18/06 to treat its card processing activities as exempt from VAT. HMRC argued that the company had not satisfied the requirements of the business brief and was sufficiently well advised to come to its own view on whether the VAT exemption applied. The tribunal concluded that the company was entitled to rely on the business brief and its activities clearly satisfied the essential components of the business brief.