Option to tax exercised – Subsequent buyer making supplies some of which zero-rated – Customs & Excise claiming that input tax solely attributable to exempt supply – Whether a proper case for apportionment
A problem of the kind stated in the above catchwords was considered by Lightman J in Commissioners of Customs & Excise v Wigget Construction Ltd [2001] 22 EG 152 (CS).
The taxpayer’s claim to an apportionment was upheld, but it was a close-run thing.
A reading between the lines suggests that the claim by Customs & Excise could have been nipped in the bud if the later transactions had been more carefully structured.
A very useful general account of the rules governing the option (or election) to tax may be found in Paul Yerbury’s
Option to tax exercised – Subsequent buyer making supplies some of which zero-rated – Customs & Excise claiming that input tax solely attributable to exempt supply – Whether a proper case for apportionment
A problem of the kind stated in the above catchwords was considered by Lightman J in Commissioners of Customs & Excise v Wigget Construction Ltd [2001] 22 EG 152 (CS).
The taxpayer’s claim to an apportionment was upheld, but it was a close-run thing.
A reading between the lines suggests that the claim by Customs & Excise could have been nipped in the bud if the later transactions had been more carefully structured.
A very useful general account of the rules governing the option (or election) to tax may be found in Paul Yerbury’s Boom, Boom! Estates Gazette 3 March 2001, p223.
