Byrom and others (trading as Salon 24) v Revenue and Customs Commissioners, 7 February 2006 (High Court).
The High Court has ruled that a partnership that hired out rooms within a building to individuals to provide massage services, was providing a taxable supply and should have charged VAT on the hire charge of the rooms.
Although the supply of a right to occupy property will generally be an exempt supply, this status may be lost if the economic reality of the transaction is that the supply of property is just one of a number of services supplied.