Input tax on legal fees incurred in relation to a director
In HMRC v Praesto Consulting UK [2017] UKUT 395 (10 October 2017) the UT found that a company was not entitled to recover input tax incurred in defending civil proceedings brought against its director.
Praesto had paid legal fees in relation to civil proceedings brought against Mr Ranson its director and founder by its former employer CSP with which it was in competition. The issue was whether Praesto was entitled to credit for input tax on VAT charged by Sintons the law firm conducting the litigation.
The first issue was whether Sintons had made supplies of legal services to Mr Ranson Praesto or both. Referring to Airtours [2016] UKSC 21 the UT observed that the ‘correct approach’ was to first decide whether Praesto was legally entitled to services by Sintons. The...
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Input tax on legal fees incurred in relation to a director
In HMRC v Praesto Consulting UK [2017] UKUT 395 (10 October 2017) the UT found that a company was not entitled to recover input tax incurred in defending civil proceedings brought against its director.
Praesto had paid legal fees in relation to civil proceedings brought against Mr Ranson its director and founder by its former employer CSP with which it was in competition. The issue was whether Praesto was entitled to credit for input tax on VAT charged by Sintons the law firm conducting the litigation.
The first issue was whether Sintons had made supplies of legal services to Mr Ranson Praesto or both. Referring to Airtours [2016] UKSC 21 the UT observed that the ‘correct approach’ was to first decide whether Praesto was legally entitled to services by Sintons. The...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")