HL [1999] STC 161; [1999] A WLR 4008; [1999] 1 All ER 1
Redrow Group Plc (Redrow) operates as a house builder. Redrow set up an incentive scheme whereby they would pay a purchasers’ Estate Agency Fees. Redrow claimed input tax incurred on these Estate Agency fees. The Commissioners argued that the Estate Agents fees were a supply made to the purchaser and not Redrow. It was decided that Redrow instructed and selected the Estate Agent and as the cost was incurred for the purpose of its business activity, it was allowed to recover the input tax.
