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Colaingrove Ltd v CRC, Court of Appeal, 4 May 2017
VAT due on supplies of power to static caravans
The taxpayer owned a holiday park with static caravans. Services to holiday makers included the provision of electricity to which the taxpayer said the reduced rate for the supply of domestic fuel or power applied under VATA 1994 s 29A. HMRC said the power was part of the supply of fully serviced holiday accommodation and should be treated as a composite single supply taxable at the standard rate.
The First-tier Tribunal allowed the taxpayer’s appeal but the Upper Tribunal overturned that decision. The taxpayer appealed.
Lady Justice Arden in the Court of Appeal agreed with HMRC that the reduced fuel rate did not apply when the supply was a composite supply of another service. She said s 29A applied the reduced rate to supplies that are specified in Sch 7A. It was defined not by reference to use but by...
