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VAT

When Valued Added Tax (VAT) was introduced it was intended to work as a simple and straightforward tax. It is now probably one of the most complex taxes, largely because it is effectively a combination both of UK and EC law. Concepts within VAT can be difficult to harmonise with UK law.

The tax contains many fine distinctions which could mean the difference between having to pay VAT or not on a particular commodity or service. One of the major areas of complexity, with which we frequently deal, relates to VAT on land and property.

As part of our overall tax planning service consideration is always given to VAT issues which in themselves have a significant effect upon the particular structure chosen. We are also happy to give advice on specific issues that may arise in relation to particular transactions.

The head of the tax division, Alan Neal, has appeared on a number of occasions at the VAT Tribunal and has successfully recovered costs against HM Revenue and Customs.

News Update: Budget 2008

In 1997 a three-year cap on claims for over-declared output tax or under-claimed input tax was imposed. However, the law contained no transitional provisions. Consequently, the House of Lords held in the landmark cases of Fleming and Conde Nast Publications in January this year that the cap only applied to claims on rights that had accrued since 1 May 1997. From 31 March 2009, by new transitional provisions announced in the budget, the cap will be imposed on claims relating to VAT rights that accrued before 1997. Therefore, if you think you or your company may have a VAT claim for tax periods prior to 1997, you now have less than 2 years to make the claim.

For more information speak to Alan Neal on 0845 55 55 321 or
email: alan.neal@mfgsolicitors.com

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