Get free updates - subscribe to our monthly newsletter Subscribe
As a result of the recent decision by the Upper Tribunal in the Colaingrove Ltd VAT case, HMRC have released business brief 12/2015 to update their stance on the VAT liability of verandas sold alongside new static caravans.
The previous stance held by HMRC was that a sale of veranda alongside a new caravan was a separate standard rated supply, even where the VAT liability of the caravan itself was either zero or reduced rated.
This view was challenged by Colaingrove Ltd who argued that the whole supply of the caravan and the veranda was one single supply and the VAT liability should follow that of the main supply, being the caravan, which depending on the make and model can benefit from either the reduced or zero rating.
Although the First Tier Tribunal sided with HMRC, this decision has now been overturned by the Upper Tier Tribunal and subsequently accepted by HMRC.
It is possible that claims can be made to HMRC for overpaid output VAT, but this will need to be reviewed on a case specific basis. If you feel your business may have been affected by this ruling, get in touch.
If you like this article and would like our FREE updates sent straight to your inbox then subscribe to our monthly newsletterSubscribe
All content © 2015 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.
Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. Unless otherwise indicated, either expressly or by the context, we use the word “partner” to describe a member of Armstrong Watson LLP or an employee of Armstrong Watson LLP in their capacity as such.
Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales, number 8800970. The registered office is 15 Victoria Place, Carlisle, CA1 1EW.
Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales, number 7208672. The registered office is 15 Victoria Place, Carlisle, CA1 1EW. Armstrong Watson Financial Planning & Wealth Management is a trading style of Armstrong Watson Financial Planning Limited.
Armstrong Watson Trustees Limited is a limited company registered in England and Wales, number 84495656. The registered office is 15 Victoria Place, Carlisle, CA1 1EW.