CELEX: C2006/036/15
Language: en
Date: 2006-02-11 00:00:00
Title: Judgment of the Court (Third Chamber) of  15 December 2005  in Case C-63/04: Reference for a preliminary ruling from the High Court of Justice of England and Wales, Chancery Division Centralan Property Ltd v Commissioners of Customs & Excise (Sixth VAT Directive — Article 20(3) — Capital goods — Deduction of input tax — Adjustments of deductions — Immovable property — Disposal by means of two connected transactions, one exempt, the other taxable — Apportionment)

11.2.2006   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 36/9
            
         
      JUDGMENT OF THE COURT
   
   (Third Chamber)
   of 15 December 2005
   in Case C-63/04: Reference for a preliminary ruling from the High Court of Justice of England and Wales, Chancery Division Centralan Property Ltd v Commissioners of Customs & Excise (1)
   
   (Sixth VAT Directive - Article 20(3) - Capital goods - Deduction of input tax - Adjustments of deductions - Immovable property - Disposal by means of two connected transactions, one exempt, the other taxable - Apportionment)
   (2006/C 36/15)
   Language of the case: English
   In Case C-63/04: Reference for a preliminary ruling under Article 234 EC from the High Court of Justice of England and Wales, Chancery Division (United Kingdom), made by decision of 21 February 2003, received at the Court on 13 February 2004, in the proceedings pending before that court between Centralan Property Ltd and Commissioners of Customs & Excise — the Court (Third Chamber), composed of A. Rosas, President of the Chamber, A. La Pergola, J.-P. Puissochet, U. Lõhmus and A. Ó Caoimh (Rapporteur), Judges; J. Kokott, Advocate General; L. Hewlett, Principal Administrator, for the Registrar, gave a judgment on 15 December 2005, the operative part of which is as follows:
   Article 20(3) of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment, as amended by Council Directive 95/7/EC of 10 April 1995, is to be interpreted as meaning that, where a 999-year lease over capital goods is granted to a person against the payment of a substantial premium and the freehold reversion in that property is transferred three days later to another person at a much lower price, and where those two transactions
   
               —
            
            
               are inextricably linked, and
            
         
               —
            
            
               consist of a first transaction which is exempt and a second transaction which is taxable,
            
         
               —
            
            
               and if those transactions, owing to the transfer of the right to dispose of those capital goods as owner, constitute supplies within the meaning of Article 5(1) of that directive,
            
         the goods in question are regarded, until the expiry of the period of adjustment, as having been used in business activities which are presumed to be partly taxable and partly exempt in proportion to the respective values of the two transactions.
   
      (1)  OJ C 85, 3.04.2004.