The Upper Tax Tribunal in London has held that two subsidiaries supplying sport services, in a VAT group with a boarding school, college, as the group member, made taxable supplies.
The case turned on VAT Act 1994 schedule 9 group 10 and note (2A)(a). In particular whether the subsidiaries were allowed only to distribute profits to the non-profit making education college, so that the supplied for VAT group purposes could be treated as exempt.
The Upper Tribunal noted that there was nothing in the subsidiary companies articles of association and memoranda, nor in a deed covering paying over profits, which only allowed profits to be made to a non-profit making body, so that note (2A)(a) was not satisfied.
The College’s appeal was dismissed.
See St Andrew’s College Bradfield v HMRC  UKUT 491 (TCC), 04/Nov/16.
Tax Barrister, Accountant