Taxation logo taxation mission text

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

Too late

14 March 2013
Issue: 4395 / Categories: Tax cases , VAT

Hawes & Curtis Ltd (TC2415)

Low Profile Properties leased a number of shops for the taxpayer. Both companies were owned by S.

The rent invoices were addressed to Low Profile Properties which was not VAT-registered. In practice the taxpayer paid the rent and was responsible for the maintenance of the buildings.

The taxpayer claimed in its VAT returns the input tax in respect of the rent. HMRC refused the claim on the basis the leases were granted to Low Profile Properties which in effect sublet the properties to the taxpayer.

This was an exempt supply because Low Profile Properties had neither registered for VAT nor opted to tax. The landlords had no relationship with the taxpayer.

The First-tier Tribunal agreed with HMRC saying it could not give the right to deduct tax on the rents to the taxpayer because Low Profile Properties was not VAT-registered and had not opted to tax...

If you or your firm subscribes to, 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 '' for further assistance.

back to top icon