Top UK Court Rules Leaseback Tactic Merits VAT Zero Rating

Law360, London (March 31, 2021, 12:02 PM BST) -- The sale and immediate leaseback of a property that benefited from zero rating for value-added tax does not mean the property was disposed of, preventing the tax authority from clawing back the tax break, the U.K. Supreme Court ruled on Wednesday.

The court ruled that HM Revenue and Customs was wrong to trigger the claw-back of a tax-free supply of goods for the construction of a socially useful asset, in this case a care home. The purpose of the option to claw back the tax break is to encourage those benefiting from the discount to maintain some economic interest in the project,...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Attached Documents

Related Sections

Law Firms

Government Agencies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!