In French Education Property Trust v HMRC [2015] UKFTT 620 (1 December 2015) the FTT found that a charity was carrying out an economic activity.
French Education Property Trust Limited (FEPT) is a registered charity. In 2009 FEPT acquired and subsequently renovated a property issuing VAT zero-rate certificates to its contractors. HMRC had decided that FEPT had not been entitled to issue those certificates because it had intended to lease the premises to the College Français Bilingue de Londres (CFBL).
The issue was whether zero-rating was available which in turn depended upon whether the property was intended for use solely by a charity ‘otherwise than in the course or furtherance of a business’ (VATA 1994 Sch 8 Group 6 item 3 and Group 5 note 6). The FTT explained that in order to succeed FEPT must show that both the...
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In French Education Property Trust v HMRC [2015] UKFTT 620 (1 December 2015) the FTT found that a charity was carrying out an economic activity.
French Education Property Trust Limited (FEPT) is a registered charity. In 2009 FEPT acquired and subsequently renovated a property issuing VAT zero-rate certificates to its contractors. HMRC had decided that FEPT had not been entitled to issue those certificates because it had intended to lease the premises to the College Français Bilingue de Londres (CFBL).
The issue was whether zero-rating was available which in turn depended upon whether the property was intended for use solely by a charity ‘otherwise than in the course or furtherance of a business’ (VATA 1994 Sch 8 Group 6 item 3 and Group 5 note 6). The FTT explained that in order to succeed FEPT must show that both the...
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