Option to tax anti-avoidance rules—Supreme Court holds that VAT must be accounted for on the selling price of a property (Moulsdale v HMRC)

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• Why it matters
• Case details

Article summary

Tax analysis: In Moulsdale, the Supreme Court decided that the anti-avoidance provisions in paragraphs 12 to 17 of Schedule 10 to the Value Added Tax Act 1994 (VATA 1994) did not prevent VAT from being chargeable on a sale of property the seller had opted to tax. The seller must therefore account for VAT on the selling price.