Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Secret attraction to VAT

27 March 2014
Issue: 4446 / Categories: Tax cases , VAT

WiltonPark Ltd and others (TC3255)

Customers of the taxpayers a number of lap dancing clubs could pay women to sit and chat or perform a private dance.

Visitors paid with cash or Secrets money which comprised face-value vouchers that were bought with a debit or credit card. They were subject to a 20% commission added to the face value. Dancers redeemed the vouchers less the 20% charge.

It was agreed by HMRC that the commission charged to customers was consideration for a taxable supply under VATA 1994 sch 10 para 2 and para 4 while the 20% taken from the dancers was consideration for a supply by the company.

The issue of the case concerned the nature of the supply.

The taxpayers claimed they were making an exempt supply of handling money (sch 9 group 5 item 1) but the Revenue argued the vouchers were not security for money:...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon