Go City Limited v The Commissioners for HMRC
Decision date: 14 August 2024
Neutral citation: [2024] UKFTT 745 (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 case concerns Go City Limited's challenge to four VAT assessments and a Liability Decision by HMRC about the VAT treatment of its London Pass and London Explorer Pass. The Tribunal held the first two assessments were invalid as HMRC had not formed the requisite view that returns were incorrect when they were issued, and it found the Passes to be multi-purpose vouchers under the Voucher Directive and Schedule 10B so that supplies were outside the scope of VAT (with the appellant's contractual reconfiguration likewise placing supplies at redemption). All appeals were allowed and the assessments and Liability Decision were set aside.
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
An assessment under s 73(1) is invalid unless, when made, it "appears to the Commissioners" (i.e. HMRC officers have formed the requisite view) that the returns are incorrect, so issuing assessments merely to protect time limits without that formed view can be invalid. Instruments meeting the conditions of Article 30a/Sch 10B (accepted as consideration and indicating/limiting the goods or suppliers) qualify as multi-purpose vouchers and are outside the scope of VAT until redemption; partial use only allocates the corresponding part of consideration to redeemed supplies.
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 as obiter that HMRC's practice of issuing assessments shortly before expiry of a two-year limit is not the same as the "protective assessment" concept used when HMRC litigates a point to protect revenue in related cases, and that administrative countersignature/authorisation requirements are internal assurances and do not necessarily determine when an assessment is "made" under s 73.