Supplies by a non-profit making body for exemption

The taxpayer ran a golf club on the site of the Stoke by Nayland Hotel Golf and Spa resort. It was established by Stoke by Nayland Club Ltd to which it paid an annual licence fee for use of the golf and fitness facilities which remained owned by the club. The taxpayer operated the golf club as a non-profit making body and after a visit by HMRC it was registered for VAT retrospectively from 1 January 2009. The taxpayer appealed saying its activities was a supply by an eligible body of services closely linked to sport or physical education under VATA 1994 Sch 9 group 10 item 3. HMRC said it was not an eligible body.

The First-tier Tribunal allowed the taxpayer’s appeal.

Before the Upper Tribunal HMRC said the First-tier Tribunal had misdirected itself by basing its decision that the taxpayer...