Royal and Sun Alliance Insurance Group plc v Commissioners of Customs and Excise: ChD 12 Oct 2000

Tenants of long lease where the landlord had elected to charge VAT, decided to seek sub-tenants. They delayed election themselves in order to assist such sub-tenants, but eventually waved their exemption and sought to reclaim the VAT paid to their own landlords. The commissioners objected. The deduction system was fundamental, and intended to relieve businesses of liability for the final responsibility for VAT, the payments which had been made were properly cost payments within the Directive, and the rentals could not be seen as a series of short lived inputs.

Citations:

Gazette 12-Oct-2000

Statutes:

VAT Regulations 1995/2518, Value Added Tax Act 1994

Jurisdiction:

England and Wales

Landlord and Tenant, VAT

Updated: 28 April 2022; Ref: scu.88885