TC09596 - [2025] UKFTT 00895 (TC)

In National Car Parks (Patten, Newey and Males LJJ), NCP operated “pay and display” car parks, in which were ticket machines. A board specified the amounts that had to be paid to park for different lengths of time. A customer wishing to leave their car for a particular period had to insert coins to the value of at least the figure given for that period in order to obtain a ticket which had to be placed in the vehicle’s windscreen. Once the requisite coins had been accepted by the machine, the customer would be able to obtain his ticket by pressing a button. Each machine indicated that no change was given, and that ‘overpayments’ were accepted. A person wishing to park therefore paid a sum in excess of the tariff shown for the period for which he wishes to park because, for instance, the coins he has do not enable him to pay the exact figure and the ticket machine does not give change.

In 2014, NCP sought to recover sums which it had accounted to HMRC as VAT in respect of ‘overpayments’ made in its pay and display car parks between 2009 and 2012. HMRC refused the claim on the ground that the overpayments were to be regarded as consideration for the right to park and were, therefore, taxable. The question raised in the appeal was whether the excess over the tariff is subject to VAT. At [9], the Court of Appeal stated that:

“9.

The authorities also show that “consideration” is a “subjective value” in the sense that “the basis of assessment for the provision of services is the consideration actually received and not a value assessed according to objective criteria” (the Dutch potato case, at paragraph 13 of the judgment) ...”

Therefore, the service and the value given, or to be given, in return for it may be ascertained from the legal relationship between the supplier and the customer (which we will return to consider later in our consideration of the relationships in this appeal).