Is a charity carrying on a business for VAT purposes?
In the recent case Longridge on The Thames (Longridge) v HMRC [2013] UKFTT 158 (TC) the First-Tier Tribunal was once again asked to consider whether the activities of a charity amounted to the carrying on of a business activity for VAT purposes. Longridge is a charity formed in 2007 to provide boating and other water-based activities and facilities for young people from its premises on the banks of the Thames. Certain courses are also available for adults.
To improve the facilities on offer, Longridge had constructed a two storey building, with the ground floor designed as a toilet and shower block and the upper floor to be used as training and meeting rooms. On the presumption that the building was to be used solely for a relevant charitable purpose, otherwise than in the course or furtherance of a business (items 2, 4 and Note 6 to Group 5, Schedule 8 VAT Act 1994), the building contractor did not charge VAT. As an aside, it
