The land owner had elected to pay VAT on the purchase of land. It sought to recover that VAT. The Commissioners appealed an order allowing that.
Held: Ther were three transactions, the purchase, the sale, and a development contract. The input tax paid in carrying out the building contract were recoverable. Was the land therefore used ‘for the purpose of the taxpayer’s taxable transaction’, namely the development contract? The cost of the land was not a component of the costs in the same way that the materials were. The mere commercial link was insufficient. The transactions had to be looked at separately in VAT law, component by component.
Judges:
Lord Justice Mantell Lord Phillips Of Worth Matravers, Mr Lord Justice Jacob
Citations:
[2003] EWCA Civ 1662, Times 21-Nov-2003
Links:
Jurisdiction:
England and Wales
Citing:
Cited – BLP Group v Commissioners of Customs and Excise ECJ 6-Apr-1995
The use of taxable goods for an exempt transaction disallowed a claim against VAT input tax. The use in that provision of the words ‘for transactions’ shows that to give the right to deduct under paragraph 2, the goods or services in question must . .
Cited – Midland Bank plc v Customs and Excise Commissioners ECJ 8-Jun-2000
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 . .
Cited – Abbey National Plc v Commissioners of Customs and Excise ECJ 22-Feb-2001
Where a part or whole of a business was sold as a going concern, not all the VAT on the expenses of the sale was to be set off against VAT. The entire amount of VAT could only be set off where the assets sold were sold as a properly identifiable . .
Cited – Card Protection Plan Ltd v Commissioners of Customs and Excise ECJ 25-Feb-1999
A company procuring insurance purchases for credit card protection was as exempt from VAT as was the insurer. A provision which restricted the ability to claim such exemption to those registered as insurers under national was invalid under European . .
Lists of cited by and citing cases may be incomplete.
VAT, Land, Construction
Updated: 14 September 2022; Ref: scu.188107