Bad advice

The appellant a company owned a substantial property which was hired out for weddings murder mysteries and various other events on an exclusive hire basis. While it was hired out on a self-catering basis the company did sometimes recommend people for waitressing cleaning etc.

HMRC claimed that the property was similar to an hotel or failing that it was akin to holiday accommodation. The supply was therefore not an exempt supply.

The taxpayer claimed that it was not a commercial property. It was a large private dwelling house hired out on an exclusive basis and it was entirely up to the hirer to decide how the property was used. No catering or other services were provided. Thus the supply was exempt.

The tribunal said that the principal supply made by the appellant was that of the...