TC09596 - [2025] UKFTT 00895 (TC)

Case Number: TC09596

[Taylor House]

Appeal reference: TC/2022/02053

VAT – supply of flooring by Appellant – fitting carried out by independent fitters – whether supply of fitting services being made by Appellant as a single supply of flooring and fitting or whether there were two separate supplies – the economic realities of the transaction when looked at as a whole – the need to have regard to all the circumstances in which the transaction or combination of transactions takes place – the contractual documentation and the legal relationship of the parties – Secret Hotels 2 Limited v HMRC; All Answers Ltd v HMRC and Tolsma v Inspecteur der Omzetbelasting Leeuwarden considered and applied – legitimate expectation and the jurisdiction to consider public law arguments in the context of an appeal against a best judgment assessment under section 73(1) of the Value Added Tax Act 1994 – Appeal allowed (The Supply Issue)

Judgment date: 24 July 2025

Before

JUDGE NATSAI MANYARARA

JOHN AGBOOLA JP

Between

UNITED CARPETS (FRANCHISOR) LTD

Appellant

and

THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS

Respondents

Representation:

For the Appellant: Mr Michael Jones KC, instructed by Mishcon de Reya LLP

For the Respondents: Miss Isabel McArdle of Counsel, instructed by the General Counsel and Solicitor to HM Revenue and Customs

DECISION