Appeal struck out

The premises of the taxpayer golf club adjoined those of Elie Golf House Club. The taxpayer paid an annual charge so that its members could play on the course of its rival club – which charged the taxpayer VAT on the fee.

In light of Canterbury Hockey Club and Canterbury Ladies Hockey Club v CRC C-253/07 [2008] STC 3351 the taxpayer decided the fee should be exempt from VAT. The clubs agreed that Elie would apply for a repayment and pass the amount to the taxpayer.

Elie paid almost £20 400 of VAT to the taxpayer – which made a direct effect claim to HMRC in October 2011 for the remaining tax paid incorrectly.

The Revenue refused the claim saying only the business that incorrectly charged and accounted for the VAT could apply for a refund. The taxpayer appealed.

The First-tier Tribunal were “of the view that HMRC...