VAT and non-business use post-Tijmens
|Category|| Technical Articles
Article by Paul Smith, indirect tax partner, PricewaterhouseCoopers LLP. This article appeared in the May 2006 issue of Tax Adviser. If a clue were needed about the importance of the Tijmens
case, it was to be found in the fact that one of the parties requested that the case be heard by a Grand Chamber. The reason for such a request is clear - for the tax authorities to win, it would have required the Court to go back on the principles established in a line of cases starting with the decision in Lennartz
The importance of the case lies in its confirmation of the choice available to a taxable person when he buys an asset for both business and non-business use. However, there are consequences for taxpayers in the UK that have not yet been explored in detail, although HMRC have issued some guidance.
May 2006 by
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