Indirect tax news from the past week
14/07/2025
‘L-Day’ – 21 July 2025
The Exchequer Secretary to the Treasury, James Murray MP, has announced that a number of draft clauses intended for the next finance bill will be published on 21 July 2025 for technical consultation. The draft clauses, which will cover pre-announced policy changes, will be published on GOV.UK along with accompanying explanatory notes, tax information and impact notes, government responses to earlier consultations, and other supporting documents. (Contact: Donna Huggard)
Customs valuation technical handbook
HMRC have published a customs valuation technical handbook. The handbook contains HMRC’s guidance on establishing value for customs duty and import VAT purposes. The handbook covers the six valuation methods, explaining what the methods are and when they should be used. The handbook sets out HMRC’s view of the law, and does not override the law. It builds on guidance previously published by HMRC, and is more akin to the types of guidance provided by the European Commission and the World Customs Organization (WCO). The handbook is part of HMRC’s efforts to update and consolidate its detailed customs guidance in Customs Technical Handbooks. (Contact: Jeffrie Mann)
VAT case update
Now we are half-way through the year, and as we approach the holiday season, it is timely to review current and upcoming case law activity.
There have been a number of cases heard at the Supreme Court and which are awaiting judgment. On 19 and 20 March 2025, the Court heard the taxpayer’s appeal in The Prudential Assurance Company Limited on the interaction between the VAT grouping rules and the time of supply for continuous supplies of services. On 7 and 8 April 2025, the Court heard HMRC’s appeal in Northumbria Healthcare NHS Foundation Trust on VAT and hospital car parking. On 4 and 5 June 2025, the Court heard the taxpayer’s appeal in Hotel La Tour Limited on VAT recovery on fundraising share costs. On 2 July 2025, the Court heard the appeal in D.E.L.T.A. Merseyside Limited and another v Uber Britannia Limited on the interpretation of the Local Government (Miscellaneous Provisions) Act 1976, which regulates the provision of private hire vehicles outside of London. Duelfuel Nutrition Limited has lodged an application for permission to appeal against the Court of Appeal judgment in Innovative Bites Limited on the VAT liability of marshmallows. (Duelfuel Nutrition was an intervener at the Court of Appeal.)
At the Court of Appeal, on 24 June 2025, there was a hearing in Hippodrome Casino Limited on a floorspace-based standard method override. Appeals in the following cases are all due to be heard by the Court in the first half of 2026: FS Commercial Limited on the inclusion of VAT invoices at the hearing; Sonder Europe Limited and Bolt Services UK Limited on the application of the tour operators’ margin scheme, and Colchester Institute Corporation on further education business activities. (Contact: Andrew Clarke)