BlackRock Investment Management (UK) Ltd v The Commissioners for HM Revenue and Customs: [2018] UKUT 0415 (TCC) [2018] UKUT 0415 (TCC)
[1]These Directions apply in place of the Directions issued on 10 December 2018.[2]Subject to the following Directions, the Tribunal shall make a request to the Court of Justice of the European Union (“CJEU”) for a preliminary ruling on a question in the form set out in draft in the Schedule to these Directions (which shall be subject to any representations made by the parties).[3]Not later than 31 January 2019, the Appellant shall serve on the Respondents a draft form of the reference to be made to the CJEU.[4]Not later than 21 February 2019, the Respondents shall serve on the Appellant a note setting out any areas of disagreement with the draft form of reference.[5]Not later than 7 March 2019, the parties shall jointly file with the Tribunal the agreed form of the reference, subject only to any remaining areas of disagreement. In relation to 2 such areas of disagreement, the parties shall file with the Tribunal their respective submissions.[6]The Tribunal will settle the form of reference and remit the Order for Reference to the CJEU.[7]Subject to these Directions, this appeal is stayed pending the determination of the preliminary ruling from the CJEU on the reference by the Tribunal. MRS JUSTICE FALK UPPER TRIBUNAL JUDGE ROGER BERNER RELEASE DATE: 20 December 2018 © CROWN COPYRIGHT 2018 3 DRAFT QUESTION FOR REFERENCE TO THE CJEU Where a single supply of management services within the meaning of Article 135.1(g) of Council Directive 2006/112/EC is made by a third-party provider to a fund manager and is used by that fund manager both in the management of special investment finds (“SIFs”) and in the management of other funds (“non-SIFs”) that are not special investment funds:(a) Is that single supply to be subject to the value added tax treatment applicable to the predominant use of the management services for SIFs or non-SIFs as the case may be (ascertained, for example, by reference to the amounts of the funds under management in the SIFs and non-SIFs respectively), treating that predominant use as the principal element of the supply and applying in that respect the principles (“the Composite Supply principles”) derived from Card Protection Plan Limited v The Commissioners of HM Customs and Excise (Case C-349/96) [1999] ECR I-973 and other case law of the Court? or(b) On the proper interpretation of Article 135.1(g), is the consideration for that single supply to be apportioned (for example, by reference to the amounts of the funds under management in the SIFs and Non-SIFs respectively) so as to treat part of the single supply as exempt and part as taxable, without application of the Composite Supply principles?