VAT costs of investment activity recoverable as overheads
The University of Cambridge has won its appeal in the First-tier Tribunal to recover a proportion of the VAT costs it incurred on the management of its endowment fund.
The key points to note are: where an investment activity is not carried out for its own sake but to generate funds to benefit the wider activities of a business, the costs can be treated as ‘overheads’; in determining whether costs are overheads it is necessary to look at the purpose of the activity objectively, even where the activities are separate; VAT incurred on such overheads can be recovered to the extent it can be attributed to taxable activities of the business.
The university’s endowment fund contributes slightly more than three per cent of the overall income of the university each year and covers around six per cent of the university’s operational expenditure…
If you are registered and logged in to the site, click on the link below to read the Nabarro briefing. If not, please register or sign in with your details below.
News from Nabarro
News from The Lawyer
Briefings from Nabarro
Non-Chinese contractors are regularly encountering contracts containing arbitration clauses providing for disputes to be determined by Chinese arbitration centres.
This note provides a short summary of the two formal insolvent liquidation processes.
Analysis from The Lawyer
Nabarro senior partner and self-confessed “IT geek” Graham Stedman is heralding a major set of investments in technology ahead of the firm’s move to 125 London Wall this year.
Clients are more willing to bring claims against professional service providers but the risk to defendants is not as dramatic as it might seem