Etienne Wong (Old Square Tax Chamber) considers whether the Longridge judgment on ‘relevant charitable purpose’ is the final word on what ‘business’ means for VAT.
A charity is planning to put up a new building. A trustee hears that if they could certify that the new building will be used solely for a ‘relevant charitable purpose’ no VAT would be payable on the construction services. Google tells her that VATA 1994 Sch 8 Group 5 note 6 says:
‘Use for a relevant charitable purpose means use by a charity in either or both the following ways namely:
(a) otherwise than in the course or furtherance of a business;
(b) as a village hall...’
The charity will not be using the building as a village hall (or similar); it will be using it to run educational courses in line with its charitable objectives. Although it will...
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Etienne Wong (Old Square Tax Chamber) considers whether the Longridge judgment on ‘relevant charitable purpose’ is the final word on what ‘business’ means for VAT.
A charity is planning to put up a new building. A trustee hears that if they could certify that the new building will be used solely for a ‘relevant charitable purpose’ no VAT would be payable on the construction services. Google tells her that VATA 1994 Sch 8 Group 5 note 6 says:
‘Use for a relevant charitable purpose means use by a charity in either or both the following ways namely:
(a) otherwise than in the course or furtherance of a business;
(b) as a village hall...’
The charity will not be using the building as a village hall (or similar); it will be using it to run educational courses in line with its charitable objectives. Although it will...
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:
