Vistry Homes Ltd & Anor v The Commissioners for HMRC
Decision date: 23 October 2023
Neutral citation: [2023] UKFTT 906 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This case concerns HMRC's application to strike out parts of Vistry and Linden's VAT appeals as barred by estoppel or abuse of process arising from a 2018 HMRC ruling and a withdrawn Linden appeal. The tribunal held the deemed determination from the withdrawn Linden appeal was limited to supplies under the Merlin agreement and did not bind the distinct contracts in the 2022 appeals. HMRC's strike‑out application was dismissed and the two appeals were ordered to be joined.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
A deemed determination resulting from a withdrawn appeal applies to the specific contract and factual matrix before the tribunal (here, the Merlin agreement) and does not automatically produce cause of action or issue estoppel against later disputes involving different contracts; estoppel and abuse of process require identity of cause/issue and that the precise contractual and commercial realities were previously litigated and determined.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The tribunal noted as commentary that contractual terms are the starting point for VAT characterisation but must be tested against economic and commercial reality, and discussed principles such as Caffoor and privity as relevant considerations in tax estoppel contexts, although these were not essential to the decision.