According to Property Week, Labour treated the purchase as an acquisition of a business rather than a property purchase, through the mechanism of ‘Transfer of a Going Concern’.
The mechanism allows companies to buy other businesses rather than properties to avoid adding VAT to the price.
But tax experts said the move was ‘completely contradictory’ to the avoidance clampdown measures outlined in last month’s PBR.
John Davison, head of indirect tax at Baker Tilley, told Property Week: ‘It is ironic that a fortnight after Gordon Brown announced his attack on unscrupulous tax avoiders the Labour Party seems to be doing exactly the same, and undermining Customs and Excise’s efforts to stamp out tax avoidance.’
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states