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22 February 2021
Issue: 4781 / Categories: Tax cases
Westow Cricket Club v CRC, Upper Tribunal (Tax and Chancery Chamber), 10 February 2021

Westow Cricket Club was a community cricket club that was also a community amateur sports club. It raised funds to build a new sports pavilion and sought guidance from HMRC on zero rating the supplies of building work made to it. HMRC said policy prevented it providing a ‘definitive response’ because the point was covered by a public notice - VAT notice 708. It added: ‘Providing the new pavilion meets the conditions set out and it appears to do so the construction work will be zero rated.’

The club issued the zero-rating certificate.

HMRC later concluded that the certificate should not have been issued because the club was a community amateur sports club and not a charity. It imposed a penalty under VATA 1994 s 62(1) saying a reasonable taxpayer in the club’s position would not have concluded HMRC had advised or confirmed...

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