No input or output tax

The Scottish Football League presented gold medals worth approximately £450 each to the players in the team that won the League Division Championships.

It was agreed with HMRC that input tax would not be claimed on the medals on the basis the organisation would not have to account for output tax once they were presented.

In 2010 M who represented the league told the Revenue that input tax recovery should be allowed but output tax was not due because the medals were not a gift but were a contracted award. The taxman disagreed.

The First-tier Tribunal said the award of medals was a supply by way of a business gift. As such it was liable under VATA 1994 Sch 4 para 5 to output tax. But recovery of input tax is not available because output...