Community amateur sports club is not a charity and does not qualify for zero rating

Eynsham Cricket Club (ECC) built a pavilion for the use of members and the local community. It considered it was a charity and therefore eligible for zero-rated building services from its contractor (VATA 1994 Sch 8 group 5). However although it was a community amateur sports club (CASC) it was not registered with the Charity Commission.

HMRC refused the claim. Both the First-tier and Upper Tribunals dismissed the club’s appeal so the matter progressed to the Court of Appeal.

Lady Justice Simler gave the judgment. The court considered first whether the club was a charity for VAT purposes – specifically whether the effect of Charities Act 2011 s 6 is to prevent a CASC being treated as established for charitable purposes with the result that the club (a registered CASC) was not a charity within the meaning of FA 2010 Sch 6.

The judge...