No exemption

The United Grand Lodge of England claimed that its aims had a philosophical philanthropic or civic nature and therefore the supplies made to its members in return for their subscriptions were exempt from VAT under article 132(1)(l) of the Principal VAT Directive.

HMRC disagreed. The First-tier Tribunal dismissed the taxpayer’s appeal.

The Upper Tribunal said the First-tier Tribunal had found that the organisation had five aims and had gone on to test the extent to which they fell within the exemption. The judge said this had been the correct approach and the tribunal had been entitled to find the promotion of freemasonry broke down into a series of aims or objects.

The judge agreed with the First-tier Tribunal that given that about 75% was directed to masons or their dependants not all of the taxpayer’s charitable giving could be considered philanthropic.

Further the judge found that...