Slaymark & Anor v Revenue & Customs (VAT : opted property) [2020] UKFTT 223 (TC) (15 May 2020)

Slaymark & Anor v Revenue & Customs (VAT : opted property) [2020] UKFTT 223 (TC) (15 May 2020)

The Tribunal found that none of the occupants had an obligation or expectation to pay rent, the appellants were not carrying on the economic activity of letting the property, and the disallowed expenses were not shown to relate to the economic activity of selling the property. Therefore, the input tax claimed was not allowable and HMRC's assessments were upheld.

Citation
[2020] UKFTT 223 (TC)
Parties
Appellants: Colin and Susan Slaymark; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
15 May 2020
Procedural Posture
VAT Appeal (first Tier Tribunal Tax) / Final Judgment After Substantive Hearing
Outcome
Appeal dismissed
Legal Topics
Opted Property, Input Tax Deduction, Economic Activity, VAT Registration, Letting of Property
Tax Law VAT Opted Property Input Tax Deduction Economic Activity VAT Registration Letting of Property

Case Brief

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Parties

Colin and Susan Slaymark

Appellants

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal (first Tier Tribunal Tax) / Final Judgment After Substantive Hearing

Legal Issues

  1. 1 Whether the occupants of the property were required to pay rent or there was an expectation of payment
  2. 2 Whether the appellants carried on the economic activity of letting the property
  3. 3 Whether the disallowed expenses related to the property and were allowable as input tax

Ratio Decidendi

The Tribunal found that none of the occupants had an obligation or expectation to pay rent, the appellants were not carrying on the economic activity of letting the property, and the disallowed expenses were not shown to relate to the economic activity of selling the property. Therefore, the input tax claimed was not allowable and HMRC's assessments were upheld.

Court Disposition

Appeal dismissed

Orders

  • HMRC's assessments of £54,935.16 and £9,511.16 are upheld
  • Input tax claimed on final VAT return is disallowed