The owner of a bed and breakfast, who is also a partner in a farm run by her husband and son, has won an appeal against an HMRC decision to combine the two businesses for VAT purposes. HMRC had treated the bed and breakfast, which generates a turnover below the threshold for VAT, as separate to the farm business for several decades, but during a recent inspection claimed the separation was artificial. The owner, Danielle Forster, has now won an appeal against the decision. Law firm CCH Fee Protection called the ruling "groundbreaking", although HMRC has insisted that this is an isolated case relating to a specific set of circumstances.
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