Cases - Winterthur Life UK Ltd v Customs & Excise Commissioners

Record details

Name
Winterthur Life UK Ltd v Customs & Excise Commissioners
Date
[1998]
Citation
VAT decision 15785
Legislation
Keywords
Value added tax - exemption from VAT - option to tax - whether pension scheme payments providing finance leading to disapplication of option to tax
Summary

The tribunal considered whether pension scheme payments could be seen as 'providing finance' and could lead to the disapplication of the option to tax where payments to a pension fund funded the acquisition of a property. The property acquired in this case was leased to the VAT-exempt business that had made the pension scheme contributions.

It was held that although this was an innocent transaction, the anti-avoidance rules must apply. Thus the option to tax was disapplied, preventing the recovery of the VAT incurred.