If you run a charity whose building is beyond repair, are you liable to VAT?
This was the question facing a charity which ran a respite centre on the coast.
The religious-based charity, dedicated to the alleviation of poverty and hardship, provided free breaks to distressed families.
The building it used for this was old and in need of replacement but the charity was unclear as to whether it would have to pay VAT.
The charity has a unique structure and terminology, and its initial representations to HMRC were unhelpful and inadvertently misleading, and various projections gave a wholly inaccurate picture.
I carried out a thorough review of the essential nature of the activities at the centre and its funding, and was able to confirm that the charity could issue a zero-rating certificate to the builder.