Case law: Abbey v the Commissioners of Customs and Excise

Gordon, Warren

Case law: Abbey v the Commissioners of Customs and Excise - 2005 - Property Week 70(22) 3 June 2005, 67(1) .

Discuses the case ([2005] EWHC 1187, unreported, L129866) involving a sale-and-leaseback agreement entered into by Abbey with Mapeley. The two companies ceated a virtual assignment by which Abbey would transfer all the economic burdens and benefits of the shorter leases to Mapely but pay a fee similar to the rent it would have paid under a normal leaseback. Customs and Excise claimed this fee should be charged VAT as it was a taxable supply of agency. However the court held that VAT was not chargeable as the arrangement should be regarded as a letting,nor would VAT be chargeable on property where Abbey had been granted the subleases and had transferred the economic benefit to Mapeley.


ABBEY V THE COMMISSIONERS OF CUSTOMS AND EXCISE