UT/2023/000021 - [2024] UKUT 00334 (TCC)

For the reasons given above, the Trust’s case on Issues 1 to 3 fails (with the result that Issue 4 does not arise for determination).

We accordingly reject the Trust’s judicial review ground that HMRC’s decision was erroneous in law because it treated the supplies of services as “business” activities when they were not “for consideration” or “economic activity” for the purposes of the PVD or else because there was no special legal regime for the purposes of Article 13 PVD (the Trust’s first ground). We also reject the Trust’s third ground regarding the alleged limitation in HMRC’s approach to local authority delegations to different bodies being irrational, arbitrary, in breach of neutrality, equal treatment and proportionality. The Trust’s second ground that HMRC’s decision breached general principles of neutrality, legal certainty and proportionality was not argued by the parties as a discrete ground. As mentioned above, the Trust says that its judicial review turns on the resolution of Issues 1-3 (and if applicable 4). That is therefore how we have addressed the claim but, for the avoidance of doubt, ground 2 is also rejected.

The Trust’s judicial review claim is accordingly dismissed.