TaxAdministrationVictory looms for HMRC in Halifax case

Victory looms for HMRC in Halifax case

European Court ruling to end certain VAT refunds for banks

HMRC logo

HM Revenue and Customs is expected to triumph in a case involving Halifax
Bank, allowing the taxman to prevent banks reclaiming as much as £1bn in VAT in
the future.

Tomorrow, the European Court of Justice is expected to rule that a scheme set
up by Halifax, in the construction of a call centre, should not allow the bank
to reclaim £7m in VAT bills, the Financial Mail reported.

VAT rules on banks allow them to reclaim only a small proportion of the VAT
on building work, but Halifax set up a separate company to act as a middleman in
the building of the call centre. As a construction services business it could
then reclaim much more VAT.

Last April, the European Advocate General gave an initial opinion ruling
against Halifax.

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

3d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

3w Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

3m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter