Macaw Properties Ltd v Revenue & Customs [2012] UKFTT 167 (TC) (01 March 2012)

Macaw Properties Ltd v Revenue & Customs [2012] UKFTT 167 (TC) (01 March 2012)

Macaw's subjective intention to operate a hotel business from the Main House was formed on or around 1 January 2006 and is supported by objective evidence; intention was bona fide and not impossible of achievement; VAT registration valid unless formally cancelled by HMRC; option to tax issues do not negate intention.

Source-derived case information.

Citation
[2012] UKFTT 167 (TC)
Parties
Appellant: Macaw Properties Ltd; Respondent: HM Revenue & Customs (HMRC)
Jurisdiction
United Kingdom
Judgment Date
01 March 2012
Procedural Posture
VAT Appeal / Decision in Principle on Intention; Quantum to Be Agreed or Relisted
Outcome
Decision in principle: Macaw formed intention to make taxable supplies from Main House on or around 1 January 2006; quantum of input tax creditable to be agreed or relisted.
Legal Topics
Input Tax Credit, Economic Activity, Intention to Make Taxable Supplies, Option to Tax, VAT Registration Validity
Tax Law VAT Input Tax Credit Economic Activity Intention to Make Taxable Supplies Option to Tax VAT Registration Validity

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Parties

Macaw Properties Ltd

Appellant

HM Revenue & Customs (HMRC)

Respondent

Procedural Posture

VAT Appeal / Decision in Principle on Intention; Quantum to Be Agreed or Relisted

Legal Issues

  1. 1 Whether Macaw intended to make taxable supplies for VAT purposes at the time of receipt of supplies
  2. 2 Whether Macaw's VAT registration is valid given the option to tax issues
  3. 3 Whether objective evidence supports Macaw's declared intention

Ratio Decidendi

Macaw's subjective intention to operate a hotel business from the Main House was formed on or around 1 January 2006 and is supported by objective evidence; intention was bona fide and not impossible of achievement; VAT registration valid unless formally cancelled by HMRC; option to tax issues do not negate intention.

Court Disposition

Decision in principle: Macaw formed intention to make taxable supplies from Main House on or around 1 January 2006; quantum of input tax creditable to be agreed or relisted.

Orders

  • Parties to agree quantum of input tax creditable; liberty to re-list for further argument if agreement not possible.