Travel company wins Supreme Court appeal

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A travel company has won a ‘landmark’ Supreme Court appeal against HMRC and is now in line for a £7.1m VAT refund.

The decision in HMRC V Secret Hotels2 [2014] UKSC 16 ends a seven-year case over whether Secret Hotels2 (formerly Med Hotels) was acting as a principal or an agent in supplying accommodation to travelers.

The court ruled that Secret Hotels2, part of Lastminute.com, wasn't liable for a £7.1m VAT bill it would have had to pay had it been found to be a principal, as it was not itself supplying accommodation to travelers. 

In a first tier tribunal in 2010, HMRC argued that...

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