Charity and zero-rated supply

The FTT, in the case of Longridge on the Thames v HMRC, has allowed an appeal that the supplies made in relation to the construction of a training centre are zero-rated on the basis it was intended for use solely for a relevant charitable purpose.

The appeal was bought to the FTT by Longridge, a registered charity, against a decision by HMRC that the supplies made to the organisation in relation to the construction of a training centre on its premises are not zero-rated supplies. The amount of VAT at issue was at least £135,000.