Lee Squires and Fiona Bantock (Hogan Lovells) report the latest VAT developments that matter, including recent cases and the European Commission’s strategy on the digital single market.
Heating Plumbing: VAT recovery on MBO fees
In Heating Plumbing Supplies Ltd v HMRC [2016] UKFTT 753 (TC) the First-tier Tribunal (FTT) considered recovery of VAT incurred on advisory fees relating to a management buyout (MBO).
Heating Plumbing Supplies Ltd (HPSL) carried on a business of distributing heating and plumbing appliances. In order to give effect to an MBO designed to incentivise HPSL’s employees Heating Plumbing Supplies Group Ltd (HPSGL) was incorporated as a new holding company wholly owned by HPSL’s staff and management. The two companies were then VAT grouped with HPSL being the group’s representative member. HPSGL did not make any supplies to HPSL.
HPSL sought to deduct input tax on professional fees incurred in connection...
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Lee Squires and Fiona Bantock (Hogan Lovells) report the latest VAT developments that matter, including recent cases and the European Commission’s strategy on the digital single market.
Heating Plumbing: VAT recovery on MBO fees
In Heating Plumbing Supplies Ltd v HMRC [2016] UKFTT 753 (TC) the First-tier Tribunal (FTT) considered recovery of VAT incurred on advisory fees relating to a management buyout (MBO).
Heating Plumbing Supplies Ltd (HPSL) carried on a business of distributing heating and plumbing appliances. In order to give effect to an MBO designed to incentivise HPSL’s employees Heating Plumbing Supplies Group Ltd (HPSGL) was incorporated as a new holding company wholly owned by HPSL’s staff and management. The two companies were then VAT grouped with HPSL being the group’s representative member. HPSGL did not make any supplies to HPSL.
HPSL sought to deduct input tax on professional fees incurred in connection...
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)")