Time to call it a day

Unjust enrichment resulting from repayment of VAT on golf club green fees

The appeal concerned several issues in relation to the VAT exemption for green fees established in Bridport and West Dorset Golf Club (Case C-495/12) [2014] STC 663.

As a result of that decision HMRC paid Bridport’s claim in full. However similar non-profit members’ golf clubs sought repayment from HMRC of output tax on green fees. HMRC wished to consider whether to raise a defence of unjust enrichment so the First-tier Tribunal directed that three clubs should represent all of the claims. HMRC and the golf clubs appointed experts.

In essence HMRC considered that the clubs would be unjustly enriched if they received a VAT rebate for historical claims without returning it to the individuals who had paid the initial fees.

The tribunal judge agreed that there would be some unjust enrichment but said a restriction of 10%...