Commentary

V7.189C Disaggregation—normal commercial arrangements

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.189C Disaggregation—normal commercial arrangements

Part V7 Tax planning | Commentary

V7.189C Disaggregation—normal commercial arrangements

One of the main changes in VAT thinking in recent years has been for tribunals and higher courts to consider an issue based on what the customer perceives to be happening – or what he perceives that he is buying with his money.

Consider the circumstances in Example 2

Example 2

Mr B provides accountancy services from his office in the High Street. Mr C trades from the same premises, offering a service to complete tax returns. Neither of the two businesses is VAT registered, as they each have taxable income of only £45,000 per annum. The following facts

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