The Macaw Properties case in the first tier tribunal clarifies the issue of VAT reclaims on recurring expenditure

The Macaw Properties Limited V HMRC [2012] UKFTT 167 case illustrates the well-known point that it is one’s intention when incurring expenditure as to how it is to be used (in VAT terms) which determines whether or not and to what extent the taxpayer can reclaim the VAT.