Publications - KPMG UK

High Court - Atrium Club Limited - structure abusive and supplies should be redefined – taxpayer lossThis case involved an arrangement entered into by Atrium to secure the benefit of VAT exemption. HMRC successful argued that the arrangements were abusive and that Halifax did apply. This meant under redefinition, Atrium Club Limited were liable for the output VAT and not an unassociated company that had been liquidated and was therefore unable to pay the tax. ECJ - Hearing dates for MacDonald Resorts Limited and Judgment dates for medical exemption casesMore key dates have been announced at the ECJ. 10 June will see the beginning of the Macdonald Resorts Limited case in Europe. This case concerns the liability of the issue of timeshare points. The same will also see Judgments in two similar medical exemption cases of Copygene and Future Health TechnologiesUKFTT 113 St John’s College – whether provision of free meals to Fellows is a taxable supply and special method override Another batch of First Tier Tribunal cases was released recently. The St John’s College Tribunal raised a number of points around the application of VNLTO to free meals provided to Fellows of the College and whether this was for the purpose of the business of the College, even though the Fellows were not significantly involved with the economic activities of the College. When considering attribution of the VAT incurred in the refurbishment of the Senior Common Room the Tribunal also looked beyond the income generated by that area (which was taxable). Even though no non economic activities were physically carried out there the Tribunal considered it was used in the ‘non economic business’ of the College in sustaining its fellowship, as it was used as an area where the Fellows met and talked and ate. Therefore the free meals were for the purpose of the business but not all the VAT incurred on the refurbishment was input tax – some had to be disallowed as relating to non economic activities. The partial exemption calculation discussions were adjourned.