Date set for MedHotels appeal
The travel industry will have to wait until early next year for the final outcome of the long-running battle between MedHotels and the VAT man.
The Supreme Court has granted a hearing to the bed bank, which was defeated in the Court of Appeal last December, but not until January 29.
The final decision will have implications for other bed banks as the case rests on whether MedHotels (now renamed SecretHotels2) was operating as a principal or an agent of the hotels.
The Court of Appeal ruled that it was operating as a principle from 2004-07 when it was owned by Lastminute.com, meaning it was liable for a £7 million tax bill for VAT under the Tour Operator’s Margin Scheme.
The decision in favour of HM Revenue and Customs overturned an early decision by an Upper Tier Tribunal which had come down in favour of MedHotels
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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