Fengate Developments (A Partnership) v Customs and Excise

Fengate Developments (A Partnership) v Customs and Excise

The transfer of the Red Land was a supply by the partnership for VAT purposes because it removed the land from partnership assets and transferred it for consideration, thus attracting VAT, regardless of the internal intentions or arrangements between the partners.

Source-derived case information.

Parties
Appellant: Fengate Developments; Respondent: The Commissioners of Customs and Excise
Jurisdiction
England and Wales
Judgment Date
06 February 2004
Procedural Posture
VAT Appeal / High Court Appeal From VAT & Duties Tribunal
Outcome
Appeal dismissed
Legal Topics
VAT on Land Transfers, Partnership Property, Waiver of VAT Exemption, Supply for VAT Purposes
Tax Law Partnership Law Property Law VAT on Land Transfers Partnership Property Waiver of VAT Exemption Supply for VAT Purposes

Source-derived case record

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Parties

Fengate Developments

Appellant

The Commissioners of Customs and Excise

Respondent

Procedural Posture

VAT Appeal / High Court Appeal From VAT & Duties Tribunal

Legal Issues

  1. 1 Whether the transfer of the Red Land constituted a taxable supply by the partnership for VAT purposes
  2. 2 Whether the transaction was merely a sale of a partnership share or a supply of land by the partnership

Ratio Decidendi

The transfer of the Red Land was a supply by the partnership for VAT purposes because it removed the land from partnership assets and transferred it for consideration, thus attracting VAT, regardless of the internal intentions or arrangements between the partners.

Court Disposition

Appeal dismissed

Orders

  • Assessment of VAT and interest against Fengate upheld