Lyon v Revenue & Customs [2009] UKFTT 267 (TC) (19 October 2009)

Lyon v Revenue & Customs [2009] UKFTT 267 (TC) (19 October 2009)

The UK’s implementation of the VAT margin scheme for second-hand cars, including the exclusion of aggregation, is permitted by the relevant EU Directive. The scheme taxes only the profit margin as required, and the discretion to exclude aggregation for second-hand cars is validly exercised for simplification purposes. The scheme is not unlawfully discriminatory under EU law. The appeal is dismissed as the legislation is properly applied and compliant.

Citation
[2009] UKFTT 267 (TC)
Parties
Appellant: Peter Benjamin Lyon; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (VAT)
Jurisdiction
United Kingdom
Judgment Date
19 October 2009
Procedural Posture
VAT Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal dismissed
Legal Topics
VAT Margin Scheme, Second Hand Goods, EU Directives Implementation, Discrimination in Taxation
Tax Law European Union Law VAT Margin Scheme Second Hand Goods EU Directives Implementation Discrimination in Taxation

Case Brief

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Parties

Peter Benjamin Lyon

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (VAT)

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether the UK VAT (Cars) Order 1992 margin scheme for second-hand cars is compliant with the relevant EU Directive
  2. 2 Whether the scheme is unfair or discriminatory
  3. 3 Whether the exclusion of aggregation for second-hand cars is a valid exercise of discretion under the Directive

Ratio Decidendi

The UK’s implementation of the VAT margin scheme for second-hand cars, including the exclusion of aggregation, is permitted by the relevant EU Directive. The scheme taxes only the profit margin as required, and the discretion to exclude aggregation for second-hand cars is validly exercised for simplification purposes. The scheme is not unlawfully discriminatory under EU law. The appeal is dismissed as the legislation is properly applied and compliant.

Court Disposition

Appeal dismissed

Orders

  • Assessment against Mr Lyon stands as no application to amend input tax computation was received by the extended deadline.