Hodge and Deery Limited v The Commissioners for HMRC
Decision date: 26 April 2022
Neutral citation: [2022] UKFTT 157 (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
Hodge & Deery Ltd supplied and installed flexible pre-formed burial vaults at a cemetery and the Tribunal held those services were VAT-exempt under Item 2 of Group 8, Schedule 9 to the VAT Act 1994 as services "in connection with the disposal of the remains of the dead." The Tribunal found the supplies produced the provision of graves for disposal and that exemption can apply to services supplied in advance and by subcontractors, not only to services tied to a specific funeral. The appeal was allowed.
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: medium
The Tribunal treated as decisive the character and result of the service: where a service produces the provision of graves for burial it can be "in connection with the disposal of the remains of the dead" and thus fall within Item 2, even if supplied in advance of any specific funeral and even when provided by subcontractors rather than an undertaker.
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 observed that HMRC guidance (Notice 701/32) is not legally binding and that statutory concepts should be interpreted to accommodate new technology (the "always speaking" rule), so modern methods of grave preparation may be treated like traditional methods for exemption purposes; these observations are indicative rather than binding.