Analysis of Supreme Court’s decision in Moulsdale v CRC

Anyone who advises on property and VAT knows that complexities and subtleties abound. But we also know that there are some axiomatic first principles and in my view two of those are that:

• a supply of land starts off generally as an exempt supply (there are exceptions for the sale of new freeholds and also for what I tend to think the ‘man on the Clapham omnibus’ would regard as really a supply of services ie the hotel room one stays in and the theatre seat one occupies); and
• an option to tax generally converts an exempt supply into a standard-rated supply (although an option can for example be ineffective (dwellings) or disapplied (charity) or disapplied by the anti-avoidance rules in VATA 1994 Sch 10 paras 12 to 17).

So why did Mr Moulsdale think it was worthwhile going all the way to...