Isle of Wight loses off-street parking VAT battle
The Isle of Wight Council has lost a multi-million pound battle with HMRC over the payment of VAT on car parking fees.
The local authority, along with West Berkshire, Mid-Suffolk District and South Tyneside Metropolitan councils, had argued they should not have paid VAT on off-street parking fees because they were part of traffic-management duties.
They had won a test case at a VAT tribunal that ruled money from off-street parking should be VAT exempt, but an appeal against the decision was launched by HMRC.
In 2006, the case went to the High Court and was referred to the European Court of Justice before being sent back to the UK tribunal service.