The Court of Appeal has overturned earlier tribunal decisions that allowed Hotel La Tour to recover VAT on the costs of selling shares to fund a new hotel. The court decided that the professional fees incurred had a direct link to the exempt sale of shares, and therefore VAT is not recoverable. Hotel La Tour appealed to recover VAT of £76,000 on professional services related to the sale of shares, but HMRC disallowed the recovery. The earlier tribunals had found in favor of Hotel La Tour, but the Court of Appeal unanimously decided against it.
Source RSM
