TOMS: does the scheme apply to the supply of serviced apartments?

The UK First-Tier Tribunal has made a ruling on the application of the Tour Operators Margin Scheme (TOMS) for businesses that buy and resell designated travel services.
TOMS can apply to any business that does this, not just travel companies.
The case in question involved a taxpayer who leased apartments from third-party landlords, furnished them and sublet them as short-term serviced accommodation to travellers.
The question was whether this constituted “material alteration” and therefore exempt from TOMS.
The Tribunal ruled that it did not constitute material alteration, meaning TOMS applies.
The outcome may have implications for other businesses in similar situations, and it remains to be seen whether HMRC will appeal the decision.