Quex Park Estates Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 22 March 2010
Neutral citation: [2010] UKFTT 126 (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 input VAT on substantial refurbishment of Nursery Cottage was recoverable by Quex Park Estates Ltd where the cottage was occupied by a director. The Tribunal held s 24(3) VATA applied, disallowing input tax to the extent the accommodation was used for domestic purposes, and found 70% domestic use by the director, adjusting the assessment accordingly. The appellant’s costs application was refused.
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 company provides accommodation used for domestic purposes by a director, section 24(3) of the Value Added Tax Act 1994 requires disallowance of input tax to the extent of that domestic use; the apportionment between business and domestic use under s 24(3) is a factual assessment to be made on the evidence, evaluated by impression after weighing the facts.
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 and discussed ECJ decisions (Lennartz, Danfoss, Puffer), observing they do not, on the facts, negate the statutory operation of s 24(3); in principle Lennartz permits a taxable person to choose an accounting approach but that requires a proper election and consequent adjustments. HMRC guidance and prior decisions are useful indicators but outcomes depend on facts.