Redwood Birkhill Ltd v Revenue and Customs Commissioners

Value added tax – Supply. In the course of carrying on the business of owning and managing hotels and public houses, the taxpayer company negotiated discounts on the purchase price of beer and other products, from two of the taxpayer's suppliers, for public houses owned or tenanted by other persons (the Publicans). On the taxpayer's appeal against the decision of the First-tier Tribunal (Tax Chamber) that the taxpayer had made supplies to the Publicans, the consideration for which consisted of the proportion retained by the taxpayer of the discounts earned by the Publicans, the Upper Tribunal (Tax Chamber) dismissed the appeal on the basis that the FTT had correctly analysed the transaction at issue with the result that VAT was payable by the taxpayer.

Category: