Taxation logo taxation mission text

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

Zero-rating claim succeeds

17 November 2015
Issue: 4527 / Categories: Tax cases , Admin

Caithness Rugby Football Club (TC4560)

The taxpayer Caithness Rugby Football Club was a charity registered in Scotland. It built a new clubhouse for £300 000 of which 50% came from Sports Scotland and the rest was funded from grants and fund-raising events.

The club assumed the building would be exempt from VAT under VATA 1994 Sch 8 group 5 but HMRC’s view was that it was standard rated.

The legislation allows zero rating for construction services supplied to buildings used by a charity if it is a village hall or similar used by a local community for social or recreational purposes.

HMRC said the key issue was the intended use of the building at the time of construction not subsequent use when the benefit of hindsight was available. The higher-than-expected use by other organisations was irrelevant. When it was built the clubhouse was mainly intended for use...

If you or your firm subscribes to Taxation.co.uk, 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 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon