UT/2023/000115 - [2025] UKUT 00004 (TCC)

The FTT decided that the 2016 Show was exempt from VAT under Item 1 of group 12 (“Item 1”).

In relation to the three sub-paragraphs of Item 1, it was common ground that sub-paragraph (a) was satisfied as the Show was organised for charitable purposes by a charity. The FTT decided that sub-paragraph (b) was satisfied, because the primary purpose of the Show was the raising of money. The FTT considered that “the primary purpose” should be read as referring to “a” primary purpose, and that a primary purpose meant one which was important. Alternatively, the FTT considered, the purpose of fund-raising was interdependent with the purpose of charitable education. The FTT decided that sub-paragraph (c) was also satisfied, when that requirement was interpreted in conformity with the PVD.

We discuss the FTT’s reasoning and conclusions in detail below. At FTT [139]-[141] the FTT summarised its conclusions as follows:

The FTT refused HMRC’s application for permission to appeal. The Upper Tribunal (Judge Jones) granted HMRC permission to appeal on two grounds.

Ground 1 is that the FTT erred in law in its interpretation of Item 1(b).

Ground 2 is that the FTT erred in law in its interpretation of Item 1(c) and wrongly excised either the whole of (c) or the word “primarily” from the statutory wording.

The Society did not provide any Respondents’ Notice.

We informed the parties at the hearing that we wished to receive further submissions from them on a number of issues, and issued directions to that effect. Those further submissions were very helpful, and we have taken them into account in reaching our decision.