Fairway Lakes Limited - Single or mulitple supply - Liability

September 2016

Fairway Lakes Ltd
Fairway operates a holiday village on the site of a golf and country club.

Some of the plots were owned by a 3rd party landlord.  Persons wishing to buy holiday accommodation entered into a 'building agreement' with Fairway.  Under the agreement, F collected various payments from the customer including, in its capacity as agent of the landlord, the first year's rent.

The issue centred around whether the payment to F consisted solely of a charge for vat---construction services (zero-rated) or a composite supply which involved F procuring a lease for the customer.

The tribunal dismissed the appellant's arguments finding that part of the supply was standard rated.

An unsurprising result really but one which highlights an oft used planning device - the packaged supply!

Please contact us for further information

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