The future of VAT planning

The VAT world is beginning to find its feet with the abuse doctrine established by the decision of the European Court of Justice the Halifax case (Case C-255/02) [2006] STC 919.

The Court of Appeal’s decision in Mayes v HMRC [2011] STC 1269 shows that the direct tax world continues to explore the boundaries of the Ramsay doctrine 30 years on from that seminal decision.

The scope of the abuse doctrine ought to be refined more rapidly.

Halifax like Ramsay helps to define the boundaries between acceptable and unacceptable planning.

The three key decisions on ‘abuse’

Three recent decisions of the ECJ and the Upper Tribunal in HMRC v Weald Leasing (Case C-103/09) [2011] STC 596 HMRC v RBS Deutschland Holdings GmbH (Case C-277/09) [2011] STC 345 and Lower...