Swanage Sea Rowing Club v HMRC

In Swanage Sea Rowing Club v HMRC [2020] UKFTT 427 (TC) (27 October 2020) the First-tier Tribunal decided that a boathouse constructed by a charitable sea rowing club was not intended for a ‘relevant charitable purpose’. However the charity had a reasonable excuse for issuing a zero-rating certificate and was therefore not liable to a penalty.

In 2013 Swanage Sea Rowing Club (SSRC) appointed a contractor to carry out the construction of a boat house on land leased from Swanage Town Council. After seeking advice from HMRC’s Charities VAT team over the phone SSRC issued a zero-rating certificate to its contractor on the basis that the work could be zero-rated as a supply in the course of construction of a building intended solely for use for relevant charitable purposes. HMRC subsequently disputed this treatment and sought to apply a...