14 October 2021 Andrea Marshall, Tax Specialist
Update as at 14/10/21
Netbusters (UK) Ltd - HMRC granted permission to appeal to the UT.
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Anna Cook (2021) UKUT 15 (TCC) UT/2019/0097
Upper Tribunal 28 January 2021
The UT allowed HMRC’s appeal, setting aside and remaking the decision. Anna Cook seeking permission to appeal to the CoA.
This case considered whether the supplies of Ceroc dancing classes qualified for exemption as a supply of private tuition.
Update: KPMG report that "In remaking the decision, the UT concluded that on the basis Ceroc is a distinct form or style of dance it would be surprising to conclude that Ceroc is commonly taught in schools or universities. This is the end of this piece of litigation."
Chelmsford City Council (2020) UKFTT 432 (TC) TC/2011/7816
First-tier Tribunal 17 October 2020 (There were three nominated cases for each of the territorial jurisdictions: (i) England & Wales (Chelmsford City Council v HMRC [2020] UKFTT 432 (TC)); (ii) Scotland (Midlothian Council v HMRC [2020] UKFTT 433 (TC)); and Northern Ireland (Mid- Ulster District Council v HMRC [2020] UKFTT 434 (TC)).
Appeal allowed. HMRC granted permission to appeal the Special Legal Regime (SLR) issue.
This case considers whether the provision of LA sports and leisure facilities are outside the scope of VAT. HMRC argued that the charges are subject to VAT. The appellants argued that:
The Tribunal rejected the first argument, accepted the second argument and (although not required) gave its opinion on the third argument concluding that LA’s constituted sporting “eligible bodies” under VATA94, Sch 10, Group 9. HMRC are appealing against the “special legal regime” argument in the Chelmsford case and “distortion of competition” in the Mid Ulster case.
Netbusters (UK) Ltd (2020) UKFTT 438 (TC) TC/2018/05959 TC/2019/00214
First-tier Tribunal 2 November 2020
Appeal allowed. HMRC seeking permission to appeal to the UT.
This case considers the exemption of the supply of football and netball pitches – even though they were hired in and then out by Netbusters. The status of Netbusters customer was important in this case.
Royal Opera House Covent Garden Foundation (2020) UKUT 0132 (TCC)
Upper Tribunal 22 April 2020 The UT allowed HMRC’s appeal. Royal Opera House appeal to the CoA heard 9 to 10 February 2021 – so decision awaited.
This case considers the treatment of overhead VAT in a partial exemption calculation. Further information can be found in this News Article.