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

Macaw formed a bona fide intention to operate a hotel business from the Main House on or around 1 January 2006, supported by objective evidence; intention was not 'pie in the sky' or impossible; VAT registration valid; option to tax issues do not negate intention.

Citation: [2012] UKFTT 167
Parties: Appellant: Macaw; 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 for Macaw; quantum of input tax creditable to be agreed or relisted.
Legal Topics: Input Tax Credit, Economic Activity, Option to Tax, Intention to Make Taxable Supplies

Tax Law VAT Input Tax Credit Economic Activity Option to Tax Intention to Make Taxable Supplies

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Full judgment text Downloadable case file Legal principles 4 Authorities cited 11 Party arguments 2 Amounts and remedies 19

Parties

Macaw

Appellant

HM Revenue & Customs (HMRC)

Respondent

Procedural Posture

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

Legal Issues

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

Ratio Decidendi

Court Disposition

Decision in principle for Macaw; 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.