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HMRC have issued its long awaited guidance on the VAT recovery position of holding companies (Holdcos) The Revenue and Customs brief below confirms that HMRC has reviewed its policy following the decision of the Court of Appeal in the case of British Airport Authority (BAA). The decision confirms that VAT is only recoverable where there is a direct and immediate link to taxable supplies. If you run a business which operates a Holdco structure you should seek to understand the implications of the new guidance as soon as possible.