Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

No direct link

27 September 2011
Issue: 4323 / Categories: Tax cases , VAT
CRC v BAA Ltd, Upper Tribunal (Tax and Chancery Chamber)

Airport Development and Investments Ltd (ADIL; now BAA Ltd) was the acquisition vehicle in a takeover bid for BAA plc by a Spanish group F.

It incurred substantial professional fees in connection with the takeover and paid VAT on the fees. After the takeover ADIL joined the BAA VAT group. The group claimed the input tax on the fees.

HMRC refused the claim saying there was no direct or immediate link between the VAT incurred by ADIL and any taxable supplies made by the BAA VAT group.

The company appealed and the First-tier Tribunal allowed the appeal.

HMRC appealed.

The Upper Tribunal (Tax and Chancery Chamber) judge said BAA’s taxable supplies were not attributable to ADIL because the latter was not a member of the BAA VAT group when it incurred the input tax.

...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon