- UK Court of Appeal decision requires companies to consider VAT recoverability in fund-raising transactions
- Case involved Hotel La Tour Limited seeking to recover VAT on professional fees for share disposal
- Court of Appeal overturned previous decisions, ruling input VAT is irrecoverable
- VAT deduction principle states VAT on goods/services used for taxable activities is deductible
- Court found previous decisions misapplied principles, focused on incorrect cost component
- Court established two-stage test for determining direct and immediate link of costs to share sale or general overheads
Source: pinsentmasons.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
