Commercial purpose condition of theatre tax relief not met

The taxpayer provided theatrical shows to Legoland Windsor park site and Whipsnade Zoo and claimed theatre tax relief. This was on the basis that the ticket price customers paid to enter either site was a composite fee that also enabled them to watch the theatrical productions that took place within the sites. As a result the people who watched those live shows were paying members of the general public. HMRC said that the entry fee was for all of the facilities and attractions within the site. The ticket price could not be apportioned so the performances were not to paying members of the public and therefore theatre tax relief was not available.

The taxpayer appealed.

The First-tier Tribunal agreed with the parties that the key to this dispute was the interpretation of the commercial purpose condition for theatre tax relief. The judge said the natural and ordinary meaning of...