Ticklock Ltd v Commissioners for Her Majesty's Revenue and Customs

Decision date: 22 June 2010

Neutral citation: [2010] UKFTT 284 (TC)

Overall AI summary confidence: high

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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 20‑year extensions to existing chalet licences at Silver Bay Holiday Park—whether they were exempt supplies of a licence to occupy land or excluded from exemption as supplies of seasonal pitches. The tribunal found the licence term (clause 6) preventing use as a main residence satisfied the Note 14(b) definition of a seasonal pitch. Consequently the supply fell within item 1(f) and was excluded from the Schedule 9 exemption, making it standard‑rated; 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: medium

The decision treats the extended licence as a distinct supply to be judged on its own terms; where a licence contains an express covenant or planning restriction preventing occupation at all times, that restriction can qualify the supply as a seasonal pitch under Note 14(b), so as to exclude it from the Schedule 9 exemption. Physical year‑round access or frequent visitation does not negate an express contractual or planning restriction for the purposes of that definition.

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, without treating it as decisive, that historical industry practice in treating original licences as exempt did not determine the character of a later, distinct supply. It also observed a possible conceptual distinction between occupation rights akin to a second home and occupation rights limited by express contractual or planning restrictions.

Warning

Some passages are repetitive; factual narrative is duplicated within the chunk.

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