Summary
This case concerned a relevant residential property and 'change of use' self supply provisions which take effect when a taxpayer, having acquired a zero rated interest, disposes of that interest. The Taxpayer funded the acquisition by a 'sale and lease back' arrangement with a third party. HMRC considered that the sale engaged the self supply for disposal of such a property. The First Tier Tribunal (FTT) held that the Taxpayer had not disposed of its entire interest, and the self supply was not engaged. However, the Upper Tribunal (UT) has taken a different view and allowed HMRC's appeal. This could have implications for other taxpayers.
