The builder had purchased two plots of land which it held as trading stock. It sought to set off the the VAT on the costs, but the issue was how it should have been apportioned with respect to the acquisition of goods or services and non-taxable residual inputs including its office supplies.
Held: The commisioners had to find a fair apportionment to taxable supplies. The taxpayers own calculations had distorted the picture, and the tax paid on the acquisition of the two plots should have been excluded.
Judges:
McCullough J
Citations:
Ind Summary 21-Aug-1995, (1996) STC 27
Statutes:
Value Added Tax Act 1983 15(3)
Jurisdiction:
England and Wales
VAT
Updated: 08 April 2022; Ref: scu.79723