Rugby club: input tax on construction of new pitch
In Cirencester Rugby Club v HMRC (TC00718 – 20 October) a rugby club which was partly exempt arranged for the construction of a new pitch. HMRC issued a ruling that the relevant input tax was wholly attributable to exempt supplies. The club appealed contending that the tax should be treated as residual as it was partly attributable to taxable supplies of advertising facilities. The Tribunal accepted this contention and allowed the appeal. (The Tribunal also allowed the club’s appeal against a misdeclaration penalty.)
Why it matters: The Tribunal held that since the club made taxable supplies of advertising facilities as well as exempt supplies the input tax on the construction of its new pitch should be treated as residual. The most worrying aspect of this case is that HMRC had thought it appropriate to...
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Rugby club: input tax on construction of new pitch
In Cirencester Rugby Club v HMRC (TC00718 – 20 October) a rugby club which was partly exempt arranged for the construction of a new pitch. HMRC issued a ruling that the relevant input tax was wholly attributable to exempt supplies. The club appealed contending that the tax should be treated as residual as it was partly attributable to taxable supplies of advertising facilities. The Tribunal accepted this contention and allowed the appeal. (The Tribunal also allowed the club’s appeal against a misdeclaration penalty.)
Why it matters: The Tribunal held that since the club made taxable supplies of advertising facilities as well as exempt supplies the input tax on the construction of its new pitch should be treated as residual. The most worrying aspect of this case is that HMRC had thought it appropriate to...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
