Abuse of rights
Applicability
By HMRC
Capital One Developments Ltd case
Claim for input tax deduction, rejected
Conditions constituting abuse
Demonstrator cars, accounting for VAT on margin rather than full selling price
Different treatment
Input tax credit on purchase of new cars
Satellite services and cable companies
Disclosure rules
Economic activity
Construction of building for subsidiary company
Generally
Exempt supplies of education services
Exemption of sporting services by creation of eligible body
Generally
Goods exported as part of VAT avoidance scheme, relief stopped
Halifax case
Generally
Redefined transaction
Illustrative cases following Halifax
Independent doctrine: claimed advantage contravenes law's aim
Input tax deduction
Lease of property to trust
Leasing transactions
Accrual of tax advantage
Generally
Newey case: offshore business need not be abuse
Nissan Motor Manufacturing (UK) Ltd case
Offshore business
Other cases on abusive practice
Part Service Srl case: aim to obtain tax advantage
Payment to person established in tax haven
Principle prohibiting abusive practices
ECJ's ruling on Halifax case
Interpretation
Optimising tax advantages
Principle prohibiting, single taxable person scheme
RBS Deutschland case: different laws exploited
Redefined transaction
Halifax plc
Sanctions allowed: payment of output tax underdeclared
Sanctions allowed: repayment of VAT deducted
Weald Leasing Ltd: lease and leaseback to defer irrecoverable VAT
Redefinition of abusive arrangements
Repayment of overpaid VAT
Refund of VAT applications
Refurbishment of leasehold property
Summary
Supply of holiday homes
Weald Leasing Ltd
Lease and leaseback to defer irrecoverable VAT
Restricted scope of abuse doctrine (asset obtained via lease or outright purchase)
WHA Ltd case: aim to obtain tax advantage
Yacht chartering and leasing