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 tax deduction is denied for expenditure incurred before the clear intention to incorporate the company (before 22 February 2006), as such expenditure was not incurred 'for the company.' Input deduction is allowed for expenditure incurred by the company after incorporation (from 23 February 2006 onwards), as...

Source-derived case information.

Citation
[2009] UKFTT 190 (TC)
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 (from 23 February 2006 onwards).
Legal Topics
VAT Registration, Pre Incorporation Expenditure, Input Tax Deduction, Value Added Tax Regulations 1995 Regulation 111
Tax Law VAT Registration Pre Incorporation Expenditure Input Tax Deduction Value Added Tax Regulations 1995 Regulation 111

Source-derived case record

Summary, issues, holding and outcome

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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' a company qualifies for input deduction upon later VAT registration
  2. 2 Whether expenditure incurred by the company prior to VAT registration qualifies for input deduction
  3. 3 Interpretation and application of Regulation 111 of the VAT Regulations 1995

Ratio Decidendi

Input tax deduction is denied for expenditure incurred before the clear intention to incorporate the company (before 22 February 2006), as such expenditure was not incurred 'for the company.' Input deduction is allowed for expenditure incurred by the company after incorporation (from 23 February 2006 onwards), as Regulation 111(1)(a) is satisfied and no onward supply occurred before registration. The issue of the Building Regulations Certificate did not constitute a tax point for VAT purposes.

Court Disposition

Appeal dismissed in respect of expenditure incurred before 22 February 2006; appeal allowed for expenditure incurred by the company after incorporation (from 23 February 2006 onwards).

Orders

  • Input tax deduction denied for expenditure incurred before 22 February 2006.
  • Input tax deduction allowed for expenditure incurred by the company after 23 February 2006.