Wolverhampton Jeep Ltd v Revenue & Customs [2010] UKFTT 116 (TC) (04 March 2010)

Wolverhampton Jeep Ltd v Revenue & Customs [2010] UKFTT 116 (TC) (04 March 2010)

The vehicles were not purchased for the purpose of being sold as new stock but were supplied to be used as demonstrator or courtesy cars. Therefore, input tax recovery was barred by the 1992 Order and the appeal must be dismissed.

Citation
[2010] UKFTT 116 (TC)
Parties
Appellant: Wolverhampton Jeep Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
04 March 2010
Procedural Posture
VAT Input Tax Appeal / First Tier Tribunal (tax), Final Decision
Outcome
Appeal dismissed
Legal Topics
Input Tax Recovery, Demonstrator Vehicles, Courtesy Vehicles, Value Added Tax (input Tax) Order 1992
Tax Law VAT Input Tax Recovery Demonstrator Vehicles Courtesy Vehicles Value Added Tax (input Tax) Order 1992

Case Brief

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Parties

Wolverhampton Jeep Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Input Tax Appeal / First Tier Tribunal (tax), Final Decision

Legal Issues

  1. 1 Whether input tax on the purchase of 21 vehicles by a car dealership is recoverable under the Value Added Tax (Input Tax) Order 1992
  2. 2 Whether the vehicles were demonstrator or courtesy cars and if this affects input tax recovery

Ratio Decidendi

The vehicles were not purchased for the purpose of being sold as new stock but were supplied to be used as demonstrator or courtesy cars. Therefore, input tax recovery was barred by the 1992 Order and the appeal must be dismissed.

Court Disposition

Appeal dismissed