TC09680 - [2025] UKFTT 01332 (TC)

The Appellant (“Cascade”) provides specialist residential and supported living services to adults with mental health needs, autism, learning disabilities and acquired brain injuries at sites in both England and Wales.

The appeal concerns the VAT liability of Cascade’s services where those services are supplied in Wales at sites regulated by Care Inspectorate Wales (“CIW”). Cascade considers that its supplies in Wales are standard-rated for VAT purposes.

By a clearance application dated 18 December 2023 Cascade sought confirmation from HMRC that supplies made in Wales fall outside the VAT exemption provided under item 9 of Group 7, Schedule 9 to the Value Added Tax Act 1994 (“Item 9”, “Group 7”, “Schedule 9” and “VATA 1994” respectively), due to the omission of the Welsh Assembly or Senedd Cymru/Welsh Parliament from Note 8 to Group 7 (“Note 8”).

On 4 March 2024 HMRC rejected Cascade’s contention, confirming that the exemption was applicable to Cascade’s circumstances.

On 22 March 2024, Cascade appealed to this Tribunal.