Skip navigation |

VAT and non-business use post-Tijmens

Category Technical Articles
AuthorTechnical Department
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 Paul Smith

Technical Department
020 7235 9381

Related Links

 

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on the The Chartered Institute of Taxation website. To find out more about the cookies, see our privacy policy.