Fairway Lakes v HMRC

In Fairway Lakes v HMRC [2015] UKFTT 605 (9 November 2015) the FTT found that the services provided went beyond construction services and were therefore standard rated.

Fairway Lakes had developed a holiday village and the issue was whether it had made zero rated supplies of construction services to customers (as it contended) or (as HMRC contended) composite taxable supplies of construction services and procuring the landowners to grant leases of plots to customers.

Referring to Secret Hotels2 Ltd [2014] STC 937 the FTT noted that since it was not suggested that the standard agreement between Fairway Lakes and its customers was a sham its terms should be considered in order to identify whether Fairway undertook to provide solely construction services or more than that namely the procurement of leases for its customers. For these purposes and following Investors Compensation...