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Weald Leasing Limited v Commissioners for the HM Revenue and Customs – VAT Tribunal – 7 February 2007

VAT – AVOIDANCE – Abuse of rights – Appellant associate of exempt trader purchasing assets to lease to separate company to lease on to exempt trader – Associate outside VAT group – Associate credited with input tax on purchases – Insertion of separate company avoided direction under VATA 1994 Sch 6 para 1 – Purpose of transaction to avoid or defer VAT of exempt trader – Halifax ECJ [2006] STC 919 considered – Purpose of legislation – Whether transactions contrary to purpose – Redefinition of transactions if abuse – Appeal allowed

Hugh McKay (in 2005) and Nicola Shaw for the Appellant