Market leading insight for tax experts
View online issue

VAT and the end of partnership

In Gordon Lye v HMRC [2015] UKFTT 0206 (reported in Tax Journal 5 June 2015) Mr Lye split up with his business partner. The business carried on under his former partner. Mr Lye wrote to HMRC to tell them of the dissolution of the partnership. HMRC says that it did not receive that letter and alleged that the partnership subsisted in reality for another two years. Hence Mr Lye was on the hook for VAT debts run up by his former partner. The tribunal believed Mr Lye and allowed his appeal.
In the course of the tribunal’s discussion certain key points of law were highlighted:
  • While the partnership subsists as a living breathing business entity all extant partners are jointly and severally liable.
  • Although a partnership may...

If you or your firm subscribes to, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.