Abbey National plc v Commissioners of Customs and Excise
Abbey National plc v Commissioners of Customs and Excise
- 2005
- Estates Gazette [2005] 19 EG 175(1) .
[2005] EWHC 831 (Ch), 6 May 2005. Considered whether a virtual transaction was exempt from VAT as leasing or letting of immovable property as used in Directive 77/388/EEC, Article 13B and implemented by the Value Added Tax Act 1994. The appellant (A) had entered into an agreement with a third party which purchased A's portfolio and then leased back any properties A wished to occupy. Some properties were either already occupied by A or sublet and required the landlord's consent for any assignment. The respondents (C) assessed A for VAT on the virtual transactions on the grounds that some properties were already occupied and were not an exempt supply of immovable supply of property and both occupied and sublet properties were considered as standard-rated supplies of agency and property management services. The VAT and Duties Tribunal upheld C's decision that the rents under the subleases accrued to M Ltd were exempt as per the 1994 Act Sched 10 para 8(1) but dismissed the second argument. A appealed and C cross-appealed. "Held": the appeal was allowed and the cross-appeal was dismissed.
[2005] EWHC 831 (Ch), 6 May 2005. Considered whether a virtual transaction was exempt from VAT as leasing or letting of immovable property as used in Directive 77/388/EEC, Article 13B and implemented by the Value Added Tax Act 1994. The appellant (A) had entered into an agreement with a third party which purchased A's portfolio and then leased back any properties A wished to occupy. Some properties were either already occupied by A or sublet and required the landlord's consent for any assignment. The respondents (C) assessed A for VAT on the virtual transactions on the grounds that some properties were already occupied and were not an exempt supply of immovable supply of property and both occupied and sublet properties were considered as standard-rated supplies of agency and property management services. The VAT and Duties Tribunal upheld C's decision that the rents under the subleases accrued to M Ltd were exempt as per the 1994 Act Sched 10 para 8(1) but dismissed the second argument. A appealed and C cross-appealed. "Held": the appeal was allowed and the cross-appeal was dismissed.