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

Citation
[2015] UKFTT 1206
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 (tax) Final Decision
Outcome
Appeal allowed
Legal Topics
VAT Registration, Partnership Dissolution, Notification Requirements, Liability for VAT After Dissolution
Tax Law Partnership Law VAT Registration Partnership Dissolution Notification Requirements Liability for VAT After Dissolution

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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 (tax) Final 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 Should VAT registration have ceased on 1 May 2008 or later?

Ratio Decidendi

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

Court Disposition

Appeal allowed

Orders

  • VAT registration of the partnership ceased from about 5 May 2008
  • Appeal against the 12/08 VAT assessment permitted out of time