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I have a charity client who has just introduced a scheme for corporate supporters that is linked to motor racing. The charity is already VAT-registered and supporters can choose either a silver or gold package. Obviously the benefits are better for the gold package for which the subscribers will pay £5 000 each year rather than £2 500.

The main benefit will be the opportunity to watch three grand prix motor races in prime locations over a year. This will include the opportunity to meet the racing drivers. Supporters will also receive as a keepsake a mechanical part from the cars – such as a wing mirror or exhaust pipe. Food and drink will be provided for the supporter’s guests at each event.

My question is whether some or all of the income could avoid VAT. Perhaps this could be either by using the fundraising rules for exemption or...