Ultrapolymers Ltd v Commissioners for Her Majesty's Revenue and Customs
Decision date: 4 January 2010
Neutral citation: [2010] UKFTT 5 (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
Ultrapolymers appealed a VAT assessment of £297,872 arising from its sale of the Sovereign Buildings, arguing that exempt supplies and recoverable input tax pre-dated its October 2003 option to tax so that written permission was required. The tribunal found on the balance of probabilities that pre-option input tax relating to the land/building was below the de minimis threshold and could be disregarded, so automatic permission applied, the option to tax was effective, and the sale was taxable. The appeal was dismissed.
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 pre-option input tax attributable to land or buildings is within the statutory de minimis limit, that input tax may be disregarded for the purpose of determining whether automatic permission to opt to tax applies; if so, the option can be effective and subsequent disposals can be taxable.
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 alleged statements by HMRC officers to the appellant were not determinative and that even if misdirection were shown it would not give the tribunal a jurisdictional basis to overturn the assessment; it also commented on the inherent difficulty and unreliability of late, imprecise allocation evidence in such cases, reducing its evidential weight.