Oaks Pavilion Ltd v Revenue & Customs [2009] UKFTT 190 (TC) (31 July 2009)

Oaks Pavilion Ltd v Revenue & Customs [2009] UKFTT 190 (TC) (31 July 2009)

Input VAT deduction is denied for expenditure incurred before the clear intention to incorporate the company (before 22 February 2006), but allowed for expenditure incurred by the company itself after incorporation (from 23 February 2006) and before VAT registration, as no onward supply occurred prior to registration.

Source-derived case information.

Citation
[2009] UKFTT 190
Parties
Appellant: Oaks Pavilion Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
31 July 2009
Procedural Posture
VAT Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed in respect of expenditure incurred before 22 February 2006; appeal allowed for expenditure incurred by the company after incorporation and before VAT registration.
Legal Topics
VAT Registration, Pre Incorporation Expenditure, Input Tax Deduction, Business Purpose, Regulation 111 VAT Regulations 1995
Tax Law VAT Registration Pre Incorporation Expenditure Input Tax Deduction Business Purpose Regulation 111 VAT Regulations 1995

Source-derived case record

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Parties

Oaks Pavilion Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether pre-incorporation expenditure incurred 'for' the company qualifies for input VAT deduction
  2. 2 Whether expenditure incurred by the company prior to VAT registration qualifies for input VAT deduction
  3. 3 Interpretation and application of Regulation 111 of the VAT Regulations 1995

Ratio Decidendi

Input VAT deduction is denied for expenditure incurred before the clear intention to incorporate the company (before 22 February 2006), but allowed for expenditure incurred by the company itself after incorporation (from 23 February 2006) and before VAT registration, as no onward supply occurred prior to registration.

Court Disposition

Appeal dismissed in respect of expenditure incurred before 22 February 2006; appeal allowed for expenditure incurred by the company after incorporation and before VAT registration.

Orders

  • Input VAT deduction allowed for expenditure incurred by the company from 23 February 2006 onwards, subject to itemisation and agreement of figures.
  • No order as to costs.