Lee v Revenue & Customs [2010] UKFTT 520 (TC) (28 October 2010)

Lee v Revenue & Customs [2010] UKFTT 520 (TC) (28 October 2010)

Mrs Lee was not carrying on a business for VAT purposes at the relevant times; the sale of Kingsley Court was not in the course of a business but was a compensatory transaction under a court order. Accordingly, she was not registrable for VAT, not entitled to input tax recovery, and not entitled to interest.

Citation
[2010] UKFTT 520 (TC)
Parties
Appellant: Priti Lee; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
28 October 2010
Procedural Posture
VAT Appeal / First Tier Tribunal (tax) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Registration, Input Tax Recovery, Business Activity for VAT Purposes, Cancellation of VAT Registration, Interest on VAT Claims
Tax Law VAT Registration Input Tax Recovery Business Activity for VAT Purposes Cancellation of VAT Registration Interest on VAT Claims

Case Brief

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Parties

Priti Lee

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax) Decision

Legal Issues

  1. 1 Whether Mrs Lee was carrying on a business for VAT purposes at the relevant times
  2. 2 Whether HMRC was correct to cancel Mrs Lee’s VAT registration under VATA, Sch 1, para 13(3)
  3. 3 Whether Mrs Lee was entitled to recover input tax for specified VAT periods

Ratio Decidendi

Mrs Lee was not carrying on a business for VAT purposes at the relevant times; the sale of Kingsley Court was not in the course of a business but was a compensatory transaction under a court order. Accordingly, she was not registrable for VAT, not entitled to input tax recovery, and not entitled to interest.

Court Disposition

Appeal dismissed

Orders

  • Mrs Lee’s appeal against cancellation of VAT registration is dismissed.
  • Mrs Lee’s appeals against assessments and rejection of input tax claims are dismissed.