Charity and other non-profit making organisations that operate
patron or supporter schemes will be interested in the recent VAT
decision of the First-Tier Tribunal in The Serpentine Trust
Ltd.
Patron schemes are popular with charities as a method to secure
donations. Typically, they offer supporters a wide variety of
benefits in return for a minimum payment, where the amount
exceeding the minimum payment is treated as a donation. This
treatment is generally accepted by HMRC.
The Serpentine Trust ran a number of supporter schemes, each
offering an array of benefits ranging from priority booking rights
to free invitations to private viewings at its art galleries. The
level of benefits received varied between schemes; however, in
order to receive any of the benefits, the wording of the
documentation meant that the supporter had to pay the full amount
of the particular scheme. A supporter could not obtain the benefits
by paying a minimum price.
