BB/12B/98 Car delivery charges—claims for input tax

Part V16 Forms and other HMRC material

BB/12B/98 Car delivery charges—claims for input tax

BB/12B/98 Car delivery charges—claims for input tax

Business Brief, Issue 12. 21 May 1998

The Court of Appeal has ruled in the case of C & E Comrs v British Telecommunications plc [1998] STC 544 [Part V10], that the contractual arrangements adopted by car manufacturers and BT created separate supplies of cars and delivery. BT was therefore entitled to recover the VAT charged to it for the delivery. If there had only been a single supply of a delivered car that would have been blocked. Customs and Excise have petitioned the House of Lords for leave to appeal. This business brief gives guidance about claiming previously non-deductible input tax where the circumstances are identical to those existing in the BT case.

The BT arrangements

The Court of Appeal's decision was based on the particular contractual arrangements that had been adopted by BT and the car manufacturers. Businesses should examine the decision carefully before considering whether it

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