Bollinway Properties Limited Denied Repayment Supplement Following Assignment of Input Tax Credit

• Acepark Ltd bought Toys “R” Us Properties Ltd (TRUP) and transferred its properties to Bollinway Properties Ltd for £355m in 2018.
• Bollinway included an input tax credit of £71m in its VAT return and requested that it be offset against TRUP’s output tax liability.
• HMRC requested backing documents, including property transfer forms (TR1), which were not provided until later.
• HMRC offset the input tax after receiving the TR1 forms.
• The Upper Tribunal determined that the TR1 forms were important to prove the property transfers had taken place.
• The First-tier Tribunal concluded that the TR1 forms should have been provided as part of the backing documents.
• HMRC did not delay the repayment for over 30 days, so Bollinway was not entitled to a repayment supplement of £3.5m.

Source: taxscape.deloitte.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.

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