Overview

The Upper Tribunal decision in BAA Limited has just been released, which overturns the previous First-Tier Tribunal decision that decided in favour of the taxpayer. On the face of it, it is a blow to acquisition vehicles trying to secure recovery of the VAT incurred on - often significant - deal costs.

However, whilst the decision is a reminder of the pitfalls that may arise, careful planning and a few simple steps should mean that VAT recovery can still be achieved. This briefing addresses the background to the case, the findings of the upper tribunal and the implications of the decision.