Cases - Roden (TC02263)
Record details
- Name
- Roden (TC02263)
- Date
- [2013]
- Citation
- UKFTT 586
- Legislation
- Keywords
- VAT
- Summary
-
The Rodens acquired a long lease in a hotel suite for a premium plus VAT. They then let the room as undisclosed agent via a hotel operator. The Rodens treated the letting activity as taxable and registered for VAT seeking to reclaim the VAT on the original purchase. HMRC resisted saying the letting of the suite was exempt from VAT as it was to the operator and not the hotel guest. The Tribunal held that the lettings were taxable and it did not matter that the hotel operator was paying for the room in the supply chain therefore the VAT on the acquisition was recoverable. The Tribunal went onto consider whether the original purchase price should have been subject to VAT due to the length of the lease.