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 tribunal held that the transfer of the property to the unit trust fundamentally changed the legal and economic position, creating distinct rights for unitholders. The appellant's services in finding a purchaser for the units constituted exempt intermediary services under Item 5, Group 5, Schedule 9, VAT Act 1994, as the transaction involved the transfer of units conferring rights under a trust, not a direct sale of property. The appellant acted as an intermediary in relation to the transfer of units, which are financial services for VAT purposes.

Citation
[2010] UKFTT 606 (TC)
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) / Final Decision on Appeal
Outcome
Appeal allowed
Legal Topics
VAT Exemption, Intermediary Services, Property Unit Trusts, Estate Agency Services, Financial Services, Stamp Duty Land Tax Avoidance
Tax Law VAT VAT Exemption Intermediary Services Property Unit Trusts Estate Agency Services Financial Services Stamp Duty Land Tax Avoidance

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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) / Final Decision on Appeal

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 tribunal held that the transfer of the property to the unit trust fundamentally changed the legal and economic position, creating distinct rights for unitholders. The appellant's services in finding a purchaser for the units constituted exempt intermediary services under Item 5, Group 5, Schedule 9, VAT Act 1994, as the transaction involved the transfer of units conferring rights under a trust, not a direct sale of property. The appellant acted as an intermediary in relation to the transfer of units, which are financial services for VAT purposes.

Court Disposition

Appeal allowed

Orders

  • The assessment to VAT is set aside.