VAT of the land

Key points * VATA 1994 Sch 8 Gp 5 and 'relevant charitable purpose'. * Recent cases and Customs' adherence to their own views. * Educational establishments and the supply of land. * The effect of Halifax and the abuse of rights. *  The Lennartz mechanism. * Is the transaction a business activity?

IN THE FILM Crash a cast of dozens weaves a web of plotlines which cross each other repeatedly over a Los Angeles night and day — sometimes literally crashing (in cars) sometimes metaphorically. This article will take a longer time-span and being about VAT will be much more exciting and rather less believable. Fasten your seat belts …

Plot 1: Charitable business

Charities don't pay much tax so it is a constant grumble of the charity sector that there is no general relief for them in respect of VAT on...