Legal News

Supreme Court upholds HMRC interpretation of development financier legislation (Moulsdale v HMRC (Scotland))

Published on: 22 March 2023
Published by LNB News

LNB News 22/03/2023

Document Information

Issue Date: 22 March 2023

Published Date: 22 March 2023

Jurisdiction(s): England, Northern Ireland, Scotland and Wales

Article summary

The Supreme Court considered an appeal relating to whether the development financier legislation at VATA 1994, Sch 10 paras 12-17 disapplied the appellant's option to tax as contended. The Supreme Court were principally considering an issue of circularity engendered by the legislation. The Supreme Court rejected the appellant's argument that the application of the legislation should ignore the disapplication of the option to tax. Instead the Supreme Court upheld HMRC's view that in the circumstances (and in order to avoid the circularity issue) the acquisition cost of the transfer to which the legislation applied should be disregarded for the purposes of assessing whether there was an intention or expectation that the property would become a capital asset. Leigh Sayliss, Partner at Memery Crystal comments on the decision.

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