Graham Langran v Her Majesty's Revenue & Customs, V 20969

20969

VAT – INPUT TAX – Appellant incurred legal expenses in respect of a dispute with his former partners – Appellant claimed VAT repayment on those supplies – were the supplies made to him in his capacity as a partner for the purposes of the partnership business – no – supplies made to him in a personal capacity – Appeal dismissed

GRAHAM LANGRAN Appellant

- and -

Tribunal: MICHAEL TILDESLEY OBE (Chairman)

SUNIL DAS (Member)

Sitting in public in London on 6 January 2009 part heard 29 April 2008

The Appellant appeared in person

Alexander Ruck Keene counsel instructed by the Solicitor of HM Revenue & Customs, for the Respondents

© CROWN COPYRIGHT 2009

DECISION

The Appeal

1. On 29 April 2008 we heard the Appellant’s appeal against the Respondents’ decision refusing his claim to recover VAT in the sum of, £41,176.49 on legal and professional fees totalling £277, 227.32, incurred by him in connection with a dispute with his former partners.

2. In our decision released 2 July 2008 we concluded that we had insufficient information to make a decision on the dispute. We, therefore, adjourned the hearing part-heard and issued the following directions:

   1. The Appellant supply the Respondents and the Tribunal with the following information in writing by no later than 4pm on 1 August 2008:

1. the breakdown from his solicitor of the legal and professional fees between the property and business disputes.

2. whether the legal and professional fees incurred by the partners including the Appellant in their dispute about the identity and value of the assets owned by the Archer partnership and its post dissolution profits formed part of the partnership assets in the winding up settlement.

1. The Respondents supply the Appellant and the Tribunal by no later than 4pm on 15 August 2008 their response to the additional information supplied by the Appellant including representations on the relevance of section 38 of the Partnership Act 1890 and the decision in Abbey National PLC v CEC (Case C-408/98) [2001] STC 297 on the facts of this case.

2. The Appellant shall have a right of reply to be served on the Respondents and the Tribunal by no later than 4pm on 29 August 208.

3. The Tribunal shall advise the parties by no later than 4pm on 12 September 2008 whether it would decide the Appeal on the basis of the written representations received or whether a further hearing is required.

1. Through no fault of the parties there was slippage in meeting the directions. After receiving the additional information the Tribunal acceded to the Appellant’s request to hold a further hearing which was arranged for 6 January 2009.

4. The Appellant contended that he was entitled to recover the VAT because the legal and professional services were supplied to him in his capacity as partner in connection with the winding up of the partnership. The Respondents, on the other hand, countered that the supplies were made to him personally and had no link with the business of the partnership.

5. The background and the parties’ arguments were set out in some detail in the decision released 2 July 2008 and are incorporated in this decision

6. Essentially the Appellant was in partnership with a Mr Halliwell and a Mr Millis and they...