Share sale costs – can VAT on deal costs now be reclaimed?

Centurion VAT – a specialist VAT team that supports organisations across the UK – has shared with Chambers Wales South East, South West and Mid news of a recent VAT case that could open up the opportunity for affected businesses to recovery past VAT they had been denied. Liz Maher – VAT Director at Centurion VAT; the VAT specialist team with the Xeinadin Accountancy and Business Advisory Group; shared the news of the Hotel La Tour VAT case which opens up the potential for VAT recovery in related to costs incurred in share sale transactions.

Liz Maher said:

“ This recent case offers a real VAT recovery opportunity, any share sale transactions undertaken in the last four years would be well worth a review as a result.”

As Liz explained:

“Businesses that have faced a restriction in the VAT recovery on costs related to share sales in the last four years should have a read through the case commentary on the Upper Tribunal view of the issues raised by Hotel La Tour. It follows HMRC’s attempt to restrict their recovery of VAT on professional fees relating to a disposal of share in a subsidiary company.”

You can find Centurion’s commentary here.

Those corporate finance advisers or accountants in our readership, with clients in this position, are equally recommended to catch up on this news. Centurion are there to support anyone affected, to identify how this judgement may benefit them, so do get in touch.

For immediate assistance to assess the potential opportunity arising from this significant case please contact Mike Trotman in Centurion’s specialist VAT team on mike.trotman@xeinadin.com –  or Liz Maher on 0330 124 7740 or at  IndirectTax@Xeinadin.com