Joiner Cummings v Revenue & Customs [2010] UKFTT 606 (TC) (25 November 2010)

Joiner Cummings v Revenue & Customs [2010] UKFTT 606 (TC) (25 November 2010)

The appellant's services constituted exempt intermediary services in relation to the transfer of units in a property unit trust, as the legal and economic reality of the transaction was materially different from a direct sale of property, and the services fell within the wording and purpose of Item 5, Group 5, Schedule 9, VAT Act 1994.

Citation
[2010] UKFTT 606
Parties
Appellant: Joiner Cummings; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
25 November 2010
Procedural Posture
VAT Appeal (first Tier Tribunal, Tax) / Appeal Against VAT Assessment and Review Decision
Outcome
Appeal allowed
Legal Topics
VAT Exemption, Intermediary Services, Property Unit Trusts, Financial Services, Estate Agency Services
Tax Law VAT Law VAT Exemption Intermediary Services Property Unit Trusts Financial Services Estate Agency Services

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Parties

Joiner Cummings

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal (first Tier Tribunal, Tax) / Appeal Against VAT Assessment and Review Decision

Legal Issues

  1. 1 Whether the appellant's services in facilitating the sale of units in a Jersey property unit trust constituted exempt intermediary services under Item 5, Group 5, Schedule 9, VAT Act 1994 or taxable estate agency services.

Ratio Decidendi

The appellant's services constituted exempt intermediary services in relation to the transfer of units in a property unit trust, as the legal and economic reality of the transaction was materially different from a direct sale of property, and the services fell within the wording and purpose of Item 5, Group 5, Schedule 9, VAT Act 1994.

Court Disposition

Appeal allowed

Orders

  • The VAT assessment is set aside; the appellant's services are exempt from VAT.