Value added tax – Input tax. The Upper tribunal (Tax and Chancery Chamber) (the tribunal) dismissed the appeal by the Revenue and Customs Commissioners against a decision of the First-tier Tribunal (Tax Chamber) (FTT) in which the FTT had upheld the partial exemption special method (PESM) proposed by LOK'nSTORE group plc for the purposes of apportioning its residual input tax. The tribunal decided that there had been no error of law in the FTT's decision.