Church Annexe – HMRC tries to turn up the heat

Churches and temples are some of the most frequent benefiters from the VAT relief that applies to charity annexes to be used for relevant charitable purposes.  They often erect new structures, but these are, for convenience or economy, commonly attached and linked to an existing building, rather than being physically separate.  But it is far from straightforward to determine when such a development qualifies as an annexe, as distinct from simple extension or enlargement (which are not relieved).  To read more, click here

VAT on Supporting People Programme – YMCA case

Four English YMCAs have come together to appeal a decision on the VAT treatment of their funding from local authorities under the Supporting People scheme.  Unfortunately, they have lost in the First Tier Tribunal (YMCA Birmingham & Ors v Revenue & Customs [2018] UKFTT 458).  It is reasonable to assume that other YMCAs, and similar bodies, will feel the effects of the decision.

Read more here