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Visual Investments v HMRC

This is a classic VAT case about who supplied what to whom and why. The context is a legal dispute involving a number of parties, including the appellant company but also individual shareholders and other related but non-group companies.

On the evidence the tribunal was clear that there was no direct and immediate link between the legal fees on which VAT was claimed and the company’s potential future supply of consultancy services, which in the event never materialised.

The tribunal also held that the supplies were made jointly to the various litigants in the case and not just to the company itself. It therefore decided that even if there had been a direct and immediate link