In The Lilias Graham Trust v HMRC [2019] UKFTT 552 (29 August 2019) the FTT found that the trust was supplying welfare services for the purpose of VATA 1994 Sch 9 Group 7 item 9 even though it never assumed responsibility for the children staying in its centre.
The Lilias Graham Trust (LGT) runs a residential assessment centre where the parenting capabilities of those referred are assessed. It also aims to strengthen ‘the ties between parent and child and to keep them together’ and offers advice enabling the parent to acquire essential parenting skills such as keeping a tidy home and nurturing a child or children. The parent can decline advice and is free to leave at any time. Referrals are made by social workers employed by local authorities.
The issue was whether LGT was entitled to claim input tax credit or whether it was not so entitled on...
