Vaughn Chown and Kevin Hall explain why businesses, charities and VAT registered organisations which manage their investments for the benefit of their wider activities should consider making claims of previously unrecovered input tax on related costs.
Until now it has not been possible to recover input tax on costs related to financial services or non-business activities. However on 19 August 2013 in its decision in Chancellor Masters & Scholars of the University of Cambridge v HMRC [2013] UKFTT 444 (TC) [2013] All ER (D) 52 (Sep) the FTT ruled that input tax on investment management fees could be recovered in certain circumstances.
This is a valuable decision for those charities educational establishments or other VAT registered...
