Following the Upper Tribunal’s decision in CRC v Yorkshire Agricultural Society [2025] STC 162 HMRC’s policy remains that the primary purpose of a charity’s fundraising event must be that of fundraising and that the event must be advertised as such for it to qualify as exempt from VAT under VATA 1994 Sch 9 Group 12.
HMRC states in new guidance that if a charity or other qualifying body considers that an event has more than one primary purpose they must be able to provide evidence of this as well as a clear explanation as to why they cannot be separated in terms of importance.
Events which are not organised to raise funds but which incidentally make a profit do not fall within the exemption.
HMRC reiterates that a fundraising event is considered to be something out of the ordinary and not business as...
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