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Moulsdale t/a Moulsdale Properties (Appellant) v Commissioners for His Majesty’s Revenue and Customs (Respondent) (Scotland)
Case summary
Case ID
UKSC/2021/0216
Parties
Appellant(s)
David Moulsdale
trading as Moulsdale Properties
Respondent(s)
Commissioners for His Majesty’s Revenue and Customs
Issue
Whether the taxpayer's sale of certain property to an unconnected purchaser was a supply exempt from value added tax ("VAT") under Schedule 10 to the VAT Act 1994.
Facts
Sales of land and buildings are generally exempt from VAT. However, an owner of land and buildings can opt to tax their property so that it then includes VAT. Schedule 10 to the VAT Act 1994 provides for compulsory disapplication of an option to tax in certain circumstances. If the relevant provisions apply, a sale of property where an option to tax has been exercised goes back to being a sale that is VAT exempt.In 2001, David Moulsdale, trading as Moulsdale Properties ("Moulsdale") purchased office property. Moulsdale exercised an option to tax over the property. In 2014, Moulsdale sold the property. When Moulsdale sold the property, VAT was not charged. Moulsdale argues he did not charge VAT because Schedule 10 to the VAT Act 1994 meant his option to tax was disapplied and so the sale of the building was VAT exempt. His Majesty's Revenue and Customs ("HMRC") disagreed. HMRC's position was that the option to tax was not disapplied under Schedule 10 to the VAT Act 1994. Accordingly, the sale was not tax exempt and Moulsdale should have accounted for VAT on the sale of the property which HMRC assessed to be £191,562 (plus interest of £11,491).
Date of issue
4 November 2021
Judgment appealed
Judgment details
Judgment date
22 March 2023
Neutral citation
[2023] UKSC 12
Judgment links
Judgment summary
22 March 2023
Appeal
Justices
Hearing dates
Start date
17 January 2023
End date
17 January 2023
Watch hearings
17 January 2023 - Morning session
17 January 2023 - Afternoon session
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Last updated 16 April 2024