In Polo Farm Sports Club v HMRC [2021] UKFTT 360 (TC) (4 October 2021) the FTT held that payment of £2m and the grant of the lease are inextricably linked from both a commercial and economic basis and are therefore liable to VAT.
HMRC determined that the funds received by Polo Farm Sports Club (PFSC) from Canterbury Christ Church University (CCCU) in respect of the development of a new indoor sports centre prior to entering into a counterpart lease with PFSC constituted consideration for the grant of a leasehold interest in the development and was therefore standard rated.
PFSC is a non-profit club that provides facilities for hockey cricket tennis and croquet. Both PFSC and CCCU are registered for VAT but CCCU’s activities are primarily exempt from VAT.
PFSC and CCCU discussed at length the concept of developing a new indoor sports centre to be used by them and by the local community....
