Barclays v HMRC – success for HMRC in the FtT

HMRC has won an important case in relation to VAT grouping and fixed establishment in the FtT. The FtT decided that a UK Branch of a US company did not have sufficient human and technical resources in the UK for a fixed establishment on the date it submitted its VAT grouping application. It was therefore ineligible to join the Barclays UK VAT group.

The FtT also briefly considered whether the UK VAT grouping regime could be interpreted consistently with EU law following Danske Bank, as well as HMRC’s protection of the revenue powers. The FtT concluded that UK law could not be read in conformity with EU law and that HMRC would not have been entitled to use their protection of the revenue powers.

Hui Ling McCarthy KC, Michael Ripley and Edward Waldegrave acted for HMRC.

A copy of the decision can be found here https://www.bailii.org/uk/cases/UKFTT/TC/2024/TC09275.html