Remember Odhams

The taxpayer golf club disagreed with HMRC about the VAT treatment of the costs of refurbishing its clubhouse.

The matter reached the First-tier Tribunal, where the Revenue argued that the issue was hypothetical and beyond the remit of the tribunal.

The judge referred to Odhams Leisure Group Ltd v CCE [1992] STC 332 as an authority that gave the tribunal no right of jurisdiction over hypothetical matters. The taxpayer’s appeal was dismissed.

The golf club asked the judge for an order for costs, saying HMRC had known about Odhams before the appeal but chosen not mention it to the taxpayer.

The department acted unreasonably in allowing the case to go the tribunal, knowing the likely outcome, and had wasted each party’s time, the club claimed. The judge dismissed the application.

The Upper Tribunal agreed with the First-tier Tribunal judge that the Revenue had not acted unreasonably. There was no evidence to show the taxman had been aware of the Odhams decision.

The taxpayer’s appeal was dismissed.

Issue: 4446 / Categories: Tax cases , Admin , VAT