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. 

Continued...

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Comments
Tom 7000's picture

Hmmmm    1 thanks

Tom 7000 | | Permalink

One government dept arguing with another....what a waste of time and money

Not even the lawyers...

andrew.hyde | | Permalink

...made any money out of this. So not all bad news then.

car parks    1 thanks

ds | | Permalink

I'm surprised the Govt hasn't taken away the right of local councils to provide parking and handed it on a plate to the private sector like they are doing with everything else....

Death of the High Street    1 thanks

vstrad | | Permalink

High parking charges by greedy councils is one of the causes of the "death of the High Street".

memyself-eye's picture

No parking fees here

memyself-eye | | Permalink

but our high street is still dead. Could be the huge out of town shopping centre(s) just up and down, the road or that interweb thingy that everyone uses these days.

As for not damaging the private sector - is that another charity shop I see.......

Yep sheer lunacy

The Black Knight | | Permalink

Tom 7000 wrote:

One government dept arguing with another....what a waste of time and money

We should just let them sink the ship and have done with it!

Where did the money end up?....... with the government.

The distortion is in the space time continuum.