The UK Supreme Court confirmed that VAT incurred on adviser fees related to an exempt share sale is not recoverable, applying a strict two‑stage test that requires a direct and immediate link to the transaction. The ruling rejects the modified approach that allowed recovery based on intended use of proceeds and clarifies that VAT grouping does not alter the nature of a share sale. Businesses must conduct early VAT analysis for share disposals to account for irrecoverable adviser fees.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
Greater Birmingham Chambers of Commerce · 1 day ago
The UK Chancellor announced temporary VAT cuts from 20% to 5% on family attractions during school holidays, effective from the end of June to 1 September 2026. Additional measures include free bus journeys for under‑16s in England in August, a 12‑month HGV road tax holiday, and a one‑third reduction in red diesel duty until the end of 2026. Business leaders argue the cuts are insufficient to support hospitality and other sectors.
Museums Association · 2 days ago
The UK government has introduced a temporary 5% VAT rate on admission to certain family attractions, effective from 25 June to 1 September 2026, replacing the standard 20% rate. The cut covers museums, planetariums, heritage sites, nature reserves, botanical gardens, children’s meals and performance‑venue tickets marketed for children, but excludes seasonal passes beyond 1 September unless priced similarly to day tickets. Charities already exempt from VAT do not benefit unless they operate through a VAT‑registered trading subsidiary.
VatCalc · 3 days ago
UK announced a temporary emergency VAT reduction from 20% to 5% on children’s meals and family attraction tickets for the 2026 summer holidays. The relief applies from 25 June to 1 September 2026 and covers specific categories such as dedicated children’s meals, family admission tickets, and attractions like theme parks and museums. Businesses may adjust VAT retrospectively and refund excess charges.
UK Government · 4 days ago
The UK will apply a temporary 5% VAT rate to children's meals, admission tickets to theatres, cinemas, concerts, exhibitions, shows, and family attractions from 25 June 2026 to 1 September 2026 inclusive. The reduced rate ends on 1 September 2026, after which the standard rate resumes.
UK Government · 12 days ago
This UK government brief outlines HMRC’s position on the VAT treatment of electricity supplied at public electric vehicle charge points, following a First‑tier Tribunal decision involving Charge My Street Limited. It clarifies how such supplies are treated for VAT purposes and provides guidance for suppliers and users.
Accountancy Age · 17 days ago
The article outlines a compliance roadmap for UK firms expanding globally, highlighting the need to register for VAT in each jurisdiction, including Germany's €1 threshold and the EU's ViDA initiative. It details penalties for non‑registration, the adoption of PEPPOL e‑invoicing, and the launch of the Crypto‑Asset Reporting Framework in 2026. UK firms are urged to map their nexus, maintain accurate digital audit trails, and integrate tax engines compatible with EU standards.
Sponsored placement
Reach finance leaders who read VAT news.
Put your brand alongside trusted tax-tech intelligence across 150+ countries.
Key Takeaways
It ruled that such VAT is not recoverable because the adviser fees have a direct and immediate link to the exempt share sale, as confirmed on 26 January 2026.
A strict two‑stage test: first, assess whether the costs have a direct and immediate link to the specific transaction; if not, consider whether they relate to the taxpayer’s general economic activity.
No, the Court rejected the modified approach that allowed recovery based on the intended use of the proceeds, stating that the link to the transaction itself is decisive.
Businesses must conduct early VAT analysis and factor in that adviser fees linked to share sales will likely be irrecoverable, impacting transaction pricing and planning.
Primary source
Read the full article at NatLawReviewThis summary was published on VATfaqs.com on 26 January 2026. It relates to VAT developments in United Kingdom. The original source is NatLawReview.
