Trinity Mirror Plc v Customs & Excise [2001] EWCA Civ 65 (25 January 2001)

Trinity Mirror Plc v Customs & Excise [2001] EWCA Civ 65 (25 January 2001)

The issue of shares by a company for consideration constitutes a supply of services for VAT purposes under the Value Added Tax Act 1994 and the Sixth VAT Directive. Such supply is exempt, so input tax on related professional fees is not deductible except to the extent attributable to shares issued to non-EU residents.

Citation
[2001] EWCA Civ 65
Parties
Appellant: Trinity Mirror PLC; Respondents: Commissioners of Customs and Excise
Jurisdiction
England and Wales
Judgment Date
25 January 2001
Procedural Posture
VAT Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Value Added Tax, Input Tax Deduction, Exempt Supplies, Supply of Services, Share Issue, Interpretation of VAT Directives
Tax Law European Union Law Value Added Tax Input Tax Deduction Exempt Supplies Supply of Services Share Issue Interpretation of VAT Directives

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Parties

Trinity Mirror PLC

Appellant

Commissioners of Customs and Excise

Respondents

Procedural Posture

VAT Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the issue of shares by a company to raise finance constitutes a 'supply of services' for VAT purposes under the Value Added Tax Act 1994 and the Sixth VAT Directive
  2. 2 Whether input tax on professional fees incurred in connection with a share issue is deductible

Ratio Decidendi

The issue of shares by a company for consideration constitutes a supply of services for VAT purposes under the Value Added Tax Act 1994 and the Sixth VAT Directive. Such supply is exempt, so input tax on related professional fees is not deductible except to the extent attributable to shares issued to non-EU residents.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the decision of the High Court and VAT Tribunal is upheld.