Lye v The Commissioners For Her Majesty's Revenue & Customs (VAT - REGISTRATION : Partnerships, of) [2015] UKFTT 206 (TC) (13 May 2015)

Lye v The Commissioners For Her Majesty's Revenue & Customs (VAT - REGISTRATION : Partnerships, of) [2015] UKFTT 206 (TC) (13 May 2015)

The partnership was dissolved on 1 May 2008, and effective notice was given to HMRC by letter posted on 3 May 2008. Section 45(2) VAT Act 1994 does not cause the partnership to be treated as continuing after HMRC received notice. VAT registration ceased from about 5 May 2008.

Citation
[2015] UKFTT 1206 (TC)
Parties
Appellant: Gordon Lye; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
13 May 2015
Procedural Posture
VAT Registration Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed
Legal Topics
VAT Registration, Partnership Dissolution, Notification Requirements, Liability for VAT
Tax Law Partnership Law VAT Registration Partnership Dissolution Notification Requirements Liability for VAT

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Parties

Gordon Lye

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Registration Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 When did the partnership between Mr Lye and Mr Ashman dissolve for VAT purposes?
  2. 2 Was HMRC properly notified of the dissolution?
  3. 3 Is VAT liability for the period after dissolution validly assessed against the partnership?

Ratio Decidendi

The partnership was dissolved on 1 May 2008, and effective notice was given to HMRC by letter posted on 3 May 2008. Section 45(2) VAT Act 1994 does not cause the partnership to be treated as continuing after HMRC received notice. VAT registration ceased from about 5 May 2008.

Court Disposition

Appeal allowed

Orders

  • The partnership ceased to be registrable for VAT from about 5 May 2008.
  • VAT liability for periods after that date is not validly assessed against the partnership.