The taxpayer took cars in part exchange on the sale of new cars. If the car was returned, the real value of the part exchange car was refunded. The taxpayer sought to be taxed on the real value of the car.
Held: The tax was payable on the actual value attributed by the parties to the part exchange car. The possibility of a later refund, was a different transaction.
Judges:
Lord Justice Aldous, Lord Justice Chadwick and Lord Justice Sedley
Citations:
Times 07-Nov-2001, Gazette 29-Nov-2001, [2001] STC 1568
Statutes:
Jurisdiction:
England and Wales
Citing:
Appeal from – Lex Services Plc v Commissioners of Customs and Excise ChD 7-Sep-2000
The taxpayer took in cars in part exchange at a cost higher than the re-sale value. The Commissioners sought to collect VAT on the higher price as shown in the agreements, and the tax payer on the actual value.
Held: Where the parties . .
Cited by:
Appeal from – Lex Services plc v Her Majestys Commissioners of Customs and Excise HL 4-Dec-2003
When taking a car in part exchange, the company would initially offer the correct market value. If the customer wanted, the company would agree a higher price. When cars were returned, the company at first reclaimed the VAT on the re-purchase price, . .
Lists of cited by and citing cases may be incomplete.
VAT
Updated: 28 April 2022; Ref: scu.166842
