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Effect of Supreme Court decision on recovering VAT on fundraising

03 December 2019 / Waqar Shah
Issue: 4723 / Categories: Comment & Analysis
Helping hand?


Key points

  • A farming business claimed repayment of input tax on single farm payment units but HMRC refused.
  • The Supreme Court confirmed previous decisions that the payments were linked to the farm’s business.
  • Implications of the judgment for entities that carry out charitable fundraising activities.
  • The court said the purpose of a person carrying out fundraising was a question of fact.

It is often the case that the timing of a judgment can mean it is overlooked. Indeed the decision of the Supreme Court in Frank Smart and Son [2019] STC 1549 was released at the  end of July 2019 – for many just before or at the start of their summer break. However the case is an important one and has been applauded particularly by those in the charity sector although it may not be as positive as some claim.

The judgment is useful for its consideration...

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