UK Funerals On-line Limited v The Commissioners for HMRC
Decision date: 20 September 2023
Neutral citation: [2023] UKFTT 784 (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 appeal concerned the VAT treatment of UK Funerals On-line Limited's repatriation services for human remains: whether they fell within the Schedule 9 exemption for arrangements in connection with disposal of the dead or were zero-rated as transport/exports under Schedule 8. The Tribunal found the services prima facie related to disposal but, applying the Mesto predominance test from authorities and assessing from the typical consumer's perspective, concluded the predominant element was specialist transport and export arrangements. The Tribunal allowed the appeal and held the supplies are zero-rated rather than exempt.
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
Where a composite supply contains both elements caught by a VAT exemption and elements falling within a zero-rating category, the VAT treatment is determined by the supply's predominant element assessed from the typical consumer's perspective using qualitative and quantitative factors; repatriation services that are principally specialist transport and export arrangements for human remains should be characterised as zero-rated transport under Schedule 8 even if they include features reminiscent of funeral services.
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 repatriation services are generally closer to disposal-related services than some prior cases (eg Network Insurance) but that there remains a boundary where the connection to disposal is too remote; it also noted that expensive caskets alone will not convert a transport-focused supply into a funeral exemption.