Next Group Plc v Revenue & Customs [2011] UKFTT 122 (TC) (16 February 2011)

Next Group Plc v Revenue & Customs [2011] UKFTT 122 (TC) (16 February 2011)

The Brochure was not supplied for consideration; the charge and delivery credit were marketing devices, and the payment received was consideration for the taxable supply of delivered goods. The arrangements were not abusive as the principal aim was commercial, not tax avoidance. Some VAT assessments were made out of time and are invalid.

Citation
[2011] UKFTT 122 (TC)
Parties
Appellant: Next Group Plc; Respondents: The Commissioners for Her Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
16 February 2011
Procedural Posture
VAT Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed in part
Legal Topics
VAT Consideration, Zero Rating, Abusive Arrangements, Time Limits for VAT Assessments
Tax Law VAT VAT Consideration Zero Rating Abusive Arrangements Time Limits for VAT Assessments

Case Brief

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Parties

Next Group Plc

Appellant

The Commissioners for Her Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether the Brochure was supplied for consideration under VAT law
  2. 2 Whether the arrangements constituted an abusive practice
  3. 3 Whether VAT assessments were made within statutory time limits

Ratio Decidendi

The Brochure was not supplied for consideration; the charge and delivery credit were marketing devices, and the payment received was consideration for the taxable supply of delivered goods. The arrangements were not abusive as the principal aim was commercial, not tax avoidance. Some VAT assessments were made out of time and are invalid.

Court Disposition

Appeal allowed in part

Orders

  • VAT assessments relating to periods outside statutory time limits are invalid
  • VAT assessments within time limits are upheld