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)

There was no obligation or expectation that rent would be paid by any of the four companies occupying the property; the appellants were not carrying on the economic activity of letting the property. The disallowed expenses were not shown to relate to the economic activity of selling the property. Therefore, input tax on those expenses was not deductible and HMRC's assessments were upheld.

Citation
[2020] UKFTT 223
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 Chamber) Final Judgment
Outcome
Appeal dismissed
Legal Topics
VAT, Opted Property, Input Tax, Economic Activity, Letting of Property, Burden of Proof
Tax Law VAT Opted Property Input Tax Economic Activity Letting of Property Burden of Proof

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 8 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Colin and Susan Slaymark

Appellants

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax Chamber) Final Judgment

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 disallowed expenses related to the property and were allowable as input tax

Ratio Decidendi

There was no obligation or expectation that rent would be paid by any of the four companies occupying the property; the appellants were not carrying on the economic activity of letting the property. The disallowed expenses were not shown to relate to the economic activity of selling the property. Therefore, input tax on those expenses was not deductible 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 on claimed expenses is disallowed