TC09555 - [2025] UKFTT 00748 (TC)

We can deal with this shortly. 3KH claimed to be entitled to deduct the VAT incurred on the redevelopment of the property from which TSL operated. It was contended that despite the assertion that RM/AN operated TSL the VAT on development costs had been incurred with the intention that 3KH would operate TSL. This claim was pursued even in respect of costs incurred after the date on which the documents referred to in paragraphs 51 (loan) and 52 (franchise agreement) above were signed.

Officer Beard accepted that 3KH was entitled to recover the VAT incurred on the premise that he was also of the view that TSL was operated by 3KH. We have determined that on the evidence TSL was operated by 3KH and accordingly, the assessments allow this input tax in full.