Bournemouth Symphony Orchestra v Customs and Excise [2005] EWHC 1566 (Ch) (21 July 2005)

Bournemouth Symphony Orchestra v Customs and Excise [2005] EWHC 1566 (Ch) (21 July 2005)

The Tribunal erred in law by holding that the mere payment of a salary to the managing director constituted a financial interest in the results of the organisation, and by failing to conduct an overall assessment of whether the management was essentially voluntary. The correct approach is to determine whether any board member has a direct or indirect financial interest in the results of the activities, and then to assess whether the management is essentially voluntary, considering the nature and extent of any remuneration and the overall structure and practice of management.

Citation
[2005] EWHC 1566 (Ch)
Parties
Appellant: Bournemouth Symphony Orchestra; Respondents: The Commissioners of Customs and Excise
Jurisdiction
England and Wales
Judgment Date
21 July 2005
Procedural Posture
VAT Exemption Appeal / High Court Appeal From VAT and Duties Tribunal
Outcome
Appeal allowed
Legal Topics
VAT Exemption, Cultural Services, Interpretation of EU Directives, Non Profit Organisations
Tax Law European Union Law VAT Exemption Cultural Services Interpretation of EU Directives Non Profit Organisations

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 4 Party arguments 2
Sign in to unlock

Parties

Bournemouth Symphony Orchestra

Appellant

The Commissioners of Customs and Excise

Respondents

Procedural Posture

VAT Exemption Appeal / High Court Appeal From VAT and Duties Tribunal

Legal Issues

  1. 1 Whether Bournemouth Symphony Orchestra is managed and administered on an essentially voluntary basis within the meaning of Article 13A(1)(n) of the Sixth Directive and the Value Added Tax Act 1994 Schedule 9 Group 13
  2. 2 Whether the presence of a remunerated managing director precludes the organisation from being considered 'essentially voluntary'

Ratio Decidendi

The Tribunal erred in law by holding that the mere payment of a salary to the managing director constituted a financial interest in the results of the organisation, and by failing to conduct an overall assessment of whether the management was essentially voluntary. The correct approach is to determine whether any board member has a direct or indirect financial interest in the results of the activities, and then to assess whether the management is essentially voluntary, considering the nature and extent of any remuneration and the overall structure and practice of management.

Court Disposition

Appeal allowed

Orders

  • The decision of the VAT and Duties Tribunal is set aside.
  • The matter is remitted to the Tribunal for reconsideration in accordance with the judgment.