In Hope in the Community Ltd v HMRC (TC02175 – 22 August) a registered charity received funds for specific projects from various sources including two local councils and a church. Initially it accounted for VAT on these funds but it subsequently submitted a repayment claim on the basis that it should have treated them as donations and as outside the scope of VAT. HMRC rejected the claim and the First-tier Tribunal dismissed the charity’s appeal. Judge Connell observed that ‘the claims relate to grants which were part of a mechanism whereby the appellant’s activities were promoted and generally for the direct or indirect benefit of the funder. The payments were not made casually without commitment or as acts of benevolence but as part of specific schemes whereby the funder and the appellant collectively...
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In Hope in the Community Ltd v HMRC (TC02175 – 22 August) a registered charity received funds for specific projects from various sources including two local councils and a church. Initially it accounted for VAT on these funds but it subsequently submitted a repayment claim on the basis that it should have treated them as donations and as outside the scope of VAT. HMRC rejected the claim and the First-tier Tribunal dismissed the charity’s appeal. Judge Connell observed that ‘the claims relate to grants which were part of a mechanism whereby the appellant’s activities were promoted and generally for the direct or indirect benefit of the funder. The payments were not made casually without commitment or as acts of benevolence but as part of specific schemes whereby the funder and the appellant collectively...
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