Balhousie Holdings Ltd v Revenue and Customs Commissioners

Value added tax – Zero-rating – Construction of buildings. Court of Session: Refusing an appeal by a taxpayer company whose subsidiary entered into a sale and leaseback to finance the acquisition of a care home, whereupon HMRC decided that the taxpayer was liable to a VAT self-supply charge in consequence of the disposal of the home, the court held that the sale and leaseback transaction amounted to the disposal of the subsidiary's entire interest in the relevant premises for the purposes of para 36(2) of Sch 10 to the Value Added Tax Act 1994, giving rise to a self-supply charge under that provision.

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