The UK Supreme Court is hearing a case on whether Hotel La Tour Ltd can recover the VAT paid on professional fees incurred to facilitate the sale of shares in its subsidiary. The dispute centers on the link between the input VAT and the company’s taxable activities. The judgment, issued 17 December 2025, will clarify the recoverability of such VAT in similar share‑sale contexts.
Whether Hotel La Tour Ltd can recover the VAT paid on professional fees incurred to assist with the sale of shares in its managed subsidiary, Hotel La Tour Birmingham Ltd.
The judgment was issued on 17 December 2025.
Hotel La Tour Ltd incurred professional fees of £382,900 plus £76,823 VAT.
The Court of Appeal overturned the decisions of the First‑tier and Upper Tribunals, allowing HMRC to challenge the VAT recovery.
It will clarify whether input VAT on professional services linked to share sales can be deducted, impacting VAT recovery practices for companies in similar situations.
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