Sale of a lift pass at an indoor ski centre

The taxpayer ran an indoor snow sport resort. It sold lift passes allowing customers to go to the top of the ski slope in a ski lift. It accounted for 5% VAT on the sale of these passes (VATA 1994 Sch 7A group 13 item 1).

HMRC said the sales were standard rated because note 1 in item 1 of group 13 excluded the transport of passengers in a cable lift ‘to from or within … a place of entertainment recreation or amusement … by the person or person connected with that person who supplies a right of admission to or a right to use facilities at such a place’. This was different from outdoor slopes where the public had a legal right of access to the hills.

The taxpayer appealed. It said the sale of a lift pass did not supply a right of...