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Pre-registration litigation expenses allowed for VAT

A company was able to claim pre-registration VAT input tax for legal fees incurred in defending the right to use intellectual property.

HMRC argued that the expenses were incurred for the director personally, and so were not company expenditure.

The tribunal found that it had always been the intention that the intellectual property would be used by the company. There was no basis to refuse the claim.

The case report can be downloaded from here.

Koolmove Ltd [2019] TC 7305 [19.08]

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