BAA gets £6.7m VAT lift after court win
Airport operator becomes the latest business giant to win VAT battle over M &A costs with the taxman
Airport operator becomes the latest business giant to win VAT battle over M &A costs with the taxman
Airports operator BAA has won a key VAT dispute with the taxman relating to
how takeover costs are taxed.
BAA’s win comes after package holiday company
MyTravel’s
landmark victory last year pinpointed by Accountancy Age as a key ruling.
BAA successfully argued it could recover VAT paid on professional services
costs, such as legal, due diligence, bank fees and advisory work linked to
Spanish suitor Ferrovial’s takeover bid in 2006.
Court papers say the taxman was looking to retain approximately £6.7m in VAT:
“HMRC disputed the input tax recovery and raised an assessment to VAT in the
amount of approximately £6.7m. The representative member of the BAA VAT group
appealed against that assessment,” Judge Peter Kempster said in the decision
document.
Richard Vitou, VAT partner at Deloitte said: “This case has significant
implications for businesses in both the corporate and private equity M&A
arena whose VAT recovery on transaction costs is currently subject to challenge
by HMRC.
“Businesses affected by this decision should now consider making claims for
repayment of VAT. The total figure at stake for other taxpayers could easily
amount to £100m.”
More about:
The numbers you crunch tell a story. Your expertis...
14yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleAs the Spring Budget approaches, dissenters of the UK government’s increasingly complex contractor legislation are baying for change. HMRC has already...
View articleStricter controls on VAT compliance is set to shut down the “colossal” VAT tax gap. Read More...
View articleThere has been a percentage increase in the number of claims made by companies, but more needs to be done Read More...
View articleThe Targeted Anti-Avoidance Rule was introduced to prevent individuals lowering their tax liability by converting what would otherwise be a dividend i...
View articleIn 2016-17, the average length of time to settle a tax investigation rose to 34 months, up from 31 months in 2015-16. The tax authority has also incre...
View articleDiverted profits tax revenue collected by HMRC in 2016-17 totalled £281m, leaping from £31m collected in the previous year, according to data released...
View articleThe report suggests a wide range of reforms focussed on bringing together corporation tax and accounts, including creating five year roadmap for CT re...
View articleIn 2012, HMRC made 591 requests to foreign governments. In 2016, this number stood at 1096, a 7% increase on 1025 requests made in 2015 Read More...
View article