Tax analysis: In WM Morrison Supermarkets plc, the First-tier Tax Tribunal (FTT) decided that the food products known as Organix and Nakd were subject to VAT at the standard rate, ruling that the products were confectionery rather than cakes.

Tax analysis: In Luxurico Ltd v HMRC, the First-tier Tax Tribunal (FTT) allowed the appeal against HMRC’s decision that input tax on the cost of a car was blocked from recovery under Article 7(1) of The Value Added Tax (Input Tax) Order 1992, SI 1992/3222. The FTT found that, at the time the input tax was incurred, Luxurico intended that the car would be used primarily for a relevant purpose.

Tax analysis: In HC-One No 1 Ltd, the First-tier Tax Tribunal (FTT) allowed the appellant’s appeal, holding that the members’ voluntary liquidation of a company above the vendor companies in the group structure, in order to preserve the benefit of SDLT group relief, did not constitute tax avoidance (for the purposes of paragraph 2(4A) of Schedule 7 to the Finance Act 2003 (FA 2003)). The FTT also decided that FA 2003, s 75A did not apply to the arrangements.

Tax analysis: In Jonathan Nuttall and another v HMRC, the First-tier Tax Tribunal (FTT) allowed the taxpayers’ appeals against landfill tax assessments and an interest charge. The FTT held that the dissolution of North Killingholme Recycling Limited (NKRL), and consequent revocation of the Environment Agency (EA) licence, did not give rise to a disposal, for landfill tax purposes, of refuse derived fuel (RDF) stored on a site.

Tax analysis: In CCLA Investment Management Ltd, the First-tier Tax Tribunal (FTT) held that fund management services supplied by an investment manager to investment funds that were ‘Charities Official Investment Funds’ (COIFs) fell within the special investment funds (SIF) exemption from VAT from July 2014 onwards. However, the investment management services provided to two other categories of fund were not eligible for the exemption.

Tax analysis: In Genuine Care Homecare Services Ltd v HMRC, the First-tier Tax Tribunal (FTT) dismissed the appellant’s appeal against assessments for VAT and a failure to notify penalty. It found that the assessments were made in time and that the appellant had no reasonable excuse for failing to notify HMRC of its liability to register for VAT in time.

Tax analysis: In Isle of Wight NHS Trust v HMRC, the First-tier Tax Tribunal (FTT) decided that VAT at the standard rate had incorrectly been charged on supplies of locum medical practitioners the Appellant received. It found that the supplies were within the scope of the exemption provided for by Item 5 of Group 7 of Schedule 9 Part 2 to the Value Added Tax Act 1994.

Tax analysis: In Michael Parker v HMRC, the First-tier Tax Tribunal (FTT) allowed the taxpayer’s appeal, holding that four disputed UK days did not count for statutory residence test (SRT) purposes. Three fell within the transit exception and one within the exceptional circumstances exception. The taxpayer’s UK day count therefore dropped below the relevant threshold, enabling him to meet the third automatic overseas test and be treated as non-UK resident for the 2019–20 tax year.

Tax analysis: In John Hosking v HMRC, the First-tier Tax Tribunal (FTT) dismissed the taxpayer’s appeal against an inheritance tax (IHT) assessment on political donations, holding that the payments did not qualify as ‘normal expenditure out of income’ under section 21 of the Inheritance Tax Act 1984 (IHTA 1984) due to the absence of any settled pattern or discernible formula. The FTT also rejected the taxpayer’s human rights arguments as respects the exemption for political donations in IHTA 1984, s 24.

Tax analysis: In MBP Europe Ltd v HMRC, the First-tier Tax Tribunal (FTT) allowed the appellant’s appeal against a penalty, imposed by HMRC under Schedule 26 of the Finance Act 2021 (FA 2021), for the late payment of VAT. This was on the basis that the appellant demonstrated that it had not received a letter informing it that it was being moved to the payments on account regime.

Tax analysis: In Nimbus: The Disability Consultancy Service Limited v HMRC, the First-Tier Tax Tribunal (FTT) found in favour of the taxpayer in that a disability ‘access card’ could be zero-rated for VAT purposes as it qualified as ‘equipment…designed solely for use by a disabled person’.

Tax analysis: In 1st Alternative Medical Staffing Ltd v HMRC, the First-tier Tax Tribunal (FTT) decided that the company’s supplies of nurses and care assistants did not qualify for exemption under Item 4, Group 7, Schedule 9 Pt II to the Value Added Tax Act 1994 (VATA 1994). The company was not a state regulated institution, but even if it had been, the FTT found that there was no statutory basis for exempting its supplies of staff. The Court of Appeal had previously decided that the company could not apply the extra-statutory concession for nursing agencies retrospectively (see R (oao First Alternative Medical Staffing Ltd and another) v HMRC [2022] EWCA Civ 249).