Crown & Cushion Hotels Ltd v Customs & Excise

Crown & Cushion Hotels Ltd v Customs & Excise

The Tribunal was justified in concluding that the consideration for the supply of the Spur was less than would have been payable in a commercial transaction conducted at arms length, and thus input tax deduction was properly disallowed.

Parties
Appellant: Crown & Cushion Hotels Ltd; Respondents: HM Commissioners of Customs & Excise
Jurisdiction
England and Wales
Judgment Date
14 July 2003
Procedural Posture
Appeal / Judgment
Outcome
Appeal dismissed
Legal Topics
Value Added Tax, Input Tax Deduction, Arms Length Transactions, Availability for Private Use
Tax Law Commercial Law Value Added Tax Input Tax Deduction Arms Length Transactions Availability for Private Use

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Parties

Crown & Cushion Hotels Ltd

Appellant

HM Commissioners of Customs & Excise

Respondents

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Whether the supply of a Rolls-Royce Spur by the Appellant to Eden Ltd was at arms length for VAT input deduction purposes
  2. 2 Whether the Appellant intended to make the car available for private use under Article 7(2G)(b) of the Value Added Tax (Input Tax) Order 1992

Ratio Decidendi

The Tribunal was justified in concluding that the consideration for the supply of the Spur was less than would have been payable in a commercial transaction conducted at arms length, and thus input tax deduction was properly disallowed.

Court Disposition

Appeal dismissed

Orders

  • No input tax deduction allowed for the Rolls-Royce Spur
  • Appellant succeeds on Article 7(2G)(b) argument but appeal fails overall