In Longridge On The Thames v HMRC (TC02574 – 15 March) a charity was formed ‘for the advancement of education in water outdoor and indoor activities for young people generally’. It arranged for the construction of a training centre on a site which it owned on the River Thames. HMRC issued a ruling that the construction of the centre was standard-rated and the charity appealed contending that it qualified for zero-rating. The First-tier Tribunal accepted this contention and allowed the appeal. Judge Sadler held that the charity was not carrying on a business and that the building was used solely for a relevant charitable purpose.
Why it matters: The First-tier Tribunal upheld the company’s contention that the training centre was intended for use solely for a relevant charitable purpose so that its construction qualified for zero-rating. Judge Sadler specifically...
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