Airtours Holiday Transport Limited (formerly) My Travel Group v Her Majesty's Revenue & Customs
Decision date: 2 October 2009
Neutral citation: [2009] UKFTT 256 (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 whether My Travel Group (formerly Airtours) could deduct VAT charged by PwC for services provided during a 2002 rescue process. The Tribunal found that the Group was a party to the engagement, authorised and paid for PwC's work, and used the services for its business, so it was entitled to claim the input tax. The appeal was allowed and directions were given on procedural steps and costs.
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 paying party has authorised and paid for professional services and obtained the benefit which is used in its business, that party may be treated as receiving the supply for VAT input deduction purposes; contractual indicators (who signed engagement letters, who was invoiced, payment/authorisation practices) are central to identifying the recipient of the supply, though they are not necessarily conclusive.
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 that practical realities—such as the passive role or unwillingness of third parties to pay—can inform interpretation of contract language (including ambiguous references like "you"), and that the same service may be supplied both to a third party and to the paying party without necessarily preventing an input tax deduction.