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.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
GOV.UK · about 7 hours ago
UK guidance on customs procedures for goods moved into the UK for international events. It covers Temporary Admission, ATA Carnet, and import duty reliefs, including application timelines, duration limits, and applicable Additional Procedure Codes (APCs).
E-Invoice.app · about 13 hours ago
HMRC has confirmed that Peppol will be the core e‑invoicing network in the UK, with a mandate set for 2029. The decentralised model will allow businesses to exchange invoices directly through their software providers, and real‑time reporting will be considered later. Technical standards and a roadmap are expected at Budget 2026.
UK Government · 1 day ago
The UK government is consulting on extending online marketplace VAT liability to domestic sellers, requiring marketplaces to collect and remit VAT on sales by UK-based sellers when goods are situated in the UK at the point of sale. The consultation runs from 23 June to 18 August 2026 and aims to reduce non‑compliance and level the playing field for VAT‑compliant sellers.
Guardian · 4 days ago
The UK government has introduced a temporary VAT cut from 20% to 5% on a range of family-friendly activities, including cinema, theatre, attractions and children’s meals, running from 25 June 2026 until 1 September 2026. Businesses may choose to pass on the reduced rate, and the scheme also offers free local bus travel for children in England during August.
Withers · 5 days ago
The Court of Appeal ruled that public funds paid to further education institutions are third‑party consideration for the supply of education, placing them within the scope of VAT but exempt. HMRC accepts the judgment, will not pursue a further appeal, and maintains the current position pending consultation, meaning institutions can continue their existing VAT treatment until any future policy change applies prospectively.
VATIT · 5 days ago
HMRC has replaced its default surcharge system with a points‑based penalty regime effective 1 January 2023. Late submissions accrue one penalty point each, with a £200 financial penalty triggered at filing‑frequency thresholds, while late payments incur percentage‑based penalties and interest at the Bank of England base rate plus 4%. Businesses must appeal within 30 days of a penalty notice and can reset points after a compliance period.
Put your brand alongside trusted tax-tech intelligence across 150+ countries.
Key Takeaways
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.
Primary source
Read the full article at Supreme CourtThis summary was published on VATfaqs.com on 14 January 2026. It relates to VAT developments in United Kingdom. The original source is Supreme Court.
