Geoffrey Tack and Bridget Winters examine the Birmingham Hippodrome Theatre Trust decision and the power of HMRC to set off taxes across multiple accounting periods
It was no doubt with some relish that Birmingham Hippodrome Theatre Trust Ltd (‘BH’) anticipated being repaid by HMRC substantial sums of overpaid VAT. There had been much wrangling about the VAT liability of admissions to theatres (and similar cultural activities). The extraordinarily lengthy legal debate about the so-called three-year cap had delayed matters for well over a decade. So now surely BH would be able to enjoy a substantial repayment of VAT together with longstanding interest?
The question of the VAT liability of cultural services unravelled...
