UTTC VALUE ADDED TAX – margin scheme for second-hand goods – arrangement by which motor dealer raised finance and became able to sell demonstrator cars within margin scheme – whether abusive – yes – appeal allowed Judges: Morgan J Citations: [2012] UKUT 90 (TCC) Links: Bailii Statutes: First Council Directive on VAT, 67/227/EEC 2 Jurisdiction: … Continue reading HM Revenue and Customs v Pendragon: UTTC 15 Mar 2012
If there is a clear and direct link between the purchase of goods and their use in output transactions on which VAT was payable, input tax was deductible even if VAT was not deductible in respect of all the supplies. Where the link is indirect than the tax may be deductible only in part. Legal … Continue reading Midland Bank plc v Customs and Excise Commissioners: ECJ 8 Jun 2000
The Revenue had imposed a penalty on the appellants saying that their arrangement for the sale and VAT taxation of demonstrator cars was, in European law terms. The taxpayer sought re-instatment of the First Tier Tribunal judgment in its favour. Held: The appeal succeeded: ‘the First-Tier Tribunal was entitled, on a comprehensive objective evaluation of … Continue reading Pendragon Plc and Others v HM Revenue and Customs: CA 23 Jul 2013
The Court was asked as to the effectiveness of a scheme, known as Project C, designed to minimise the overall liability to VAT of a group of companies involved in motor breakdown insurance. Held: The court dismissed WHA’s appeal. There had been no supply of repairs to WHA. The justifications for the project relied upon … Continue reading WHA Ltd and Another v Revenue and Customs: SC 1 May 2013
References: [2012] UKUT 90 (TCC) Links: Bailii Coram: Morgan J Ratio: UTTC VALUE ADDED TAX – margin scheme for second-hand goods – arrangement by which motor dealer raised finance and became able to sell demonstrator cars within margin scheme – whether abusive – yes – appeal allowed Statutes: First Council Directive on VAT, 67/227/EEC 2 … Continue reading HM Revenue and Customs v Pendragon; UTTC 15 Mar 2012