In Wakefield College v HMRC (TC00948 – 15 February) a college which was a registered charity arranged for the construction of a new campus. HMRC issued a ruling that the construction was standard-rated. The college appealed contending that the construction qualified for zero-rating. The Tribunal rejected this contention and dismissed the appeal holding that the building was to be used in the course of a business so that the conditions of VATA 1994 Sch 8 Group 5 Note 6(a) were not satisfied. The Tribunal also specifically rejected the college’s contention that it should be regarded as a ‘body governed by public law’ applying the principles laid down by the Ch D in Chancellor Masters & Scholars of the University of Cambridge v HMRC [2009] STC 1288.
Why it matters: VATA 1994 Sch 8 Group 5 Note 6(a) provides that a building is...
