Local Council’s challenge on VAT due on Overpayments for Parking income hits the barrier

It’s been a long-running case for King’s Lynn and West Norfolk Council and followed with much interest by councils across the UK, but this week the issue seems finally to have been “parked” by the Upper Tier Tribunal. HMRC notes on the decision can be read here The additional monies collected by the council in respect of off-street parking, where the machines do not offer change, was argued not to be part of the consideration for the supply of parking and therefore not subject to VAT. The Upper Tier Tribunal disagreed with the Council’s appeal against the First Tier’s decision that the supply was consideration and was taxable

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