Lime Avenue Sales and Services Limited and Benenden School Trust v Revenue and Customs Commissioners

28 Jun 2007 | by Peter Mantle

First published by De Voil Indirect Tax Intelligence, Issue 133, June 2007

Lime Avenue Sales and Services Ltd and Benenden School Trust v Revenue and Customs Commissioners (2007) VAT Decision 20140 was a Tribunal appeal concerning alleged abusive practices in the education sector.  HMRC refused claims by 2 companies to deduct input tax incurred in the construction of school buildings.  The Tribunal chairman was the President, Sir Stephen Oliver, who had made the reference in Halifax (C- 255/02) [2006] STC 919).  The Tribunal dismissed the appeals.  Approaching the arrangements in 2 parts, it found that the abuse principle applied. It redefined the “Initial Arrangements”, practically compelling a view that the “Further Arrangements” were also abusive.  The Decision was released on 3 May 2005 (Ref: v 20140).