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Our clients trade as a partnership and own a restaurant. They take wine out of the business to consume at home. HMRC, applying Sharkey v Wernher 36 TC 275, claim that the market value that the clients should be charged for the wine is the restaurant price, e.g. £15.
This should be an adjustment to profit which the clients are then taxed upon.
Our clients trade as a partnership and own a restaurant. They take wine out of the business to consume at home. HMRC applying Sharkey v Wernher 36 TC 275 claim that the market value that the clients should be charged for the wine is the restaurant price e.g. £15.
This should be an adjustment to profit which the clients are then taxed upon.
We argue that wine consumed in a restaurant is a different commodity from wine consumed at home. The restaurant wine includes service ambience etc. The market value for the wine taken home is therefore equivalent to the supermarket price e.g. £4.
Why would our clients charge themselves £15 for wine which could be bought by anyone else in the supermarket to take home at £4?
It seems wrong that our clients should be charged...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
