Denis Edwards (Temple Tax Chambers) examines the Upper Tribunal decision in HMRC v Chelmsford City Council that offers some scope for other public bodies to argue that they are not taxable persons for VAT.
Local authorities may charge for access to recreational and leisure facilities – such as tennis courts and swimming pools – provided by them. In December 2010 Chelmsford City Council (‘the council’) made a voluntary disclosure to HMRC claiming repayment of VAT allegedly overpaid between 2006 and 2010. HMRC rejected the claim and the council appealed.
In the First-tier Tribunal ([2020] UKFTT 432 (TC)) the council first argued that when providing the facilities to the public it was not a taxable person because the relevant activities were not ‘economic activities’. The FTT rejected that argument and ultimately the council abandoned it. Although the council’s aim was not to make profits from charging for...
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Denis Edwards (Temple Tax Chambers) examines the Upper Tribunal decision in HMRC v Chelmsford City Council that offers some scope for other public bodies to argue that they are not taxable persons for VAT.
Local authorities may charge for access to recreational and leisure facilities – such as tennis courts and swimming pools – provided by them. In December 2010 Chelmsford City Council (‘the council’) made a voluntary disclosure to HMRC claiming repayment of VAT allegedly overpaid between 2006 and 2010. HMRC rejected the claim and the council appealed.
In the First-tier Tribunal ([2020] UKFTT 432 (TC)) the council first argued that when providing the facilities to the public it was not a taxable person because the relevant activities were not ‘economic activities’. The FTT rejected that argument and ultimately the council abandoned it. Although the council’s aim was not to make profits from charging for...
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:
