Barnett & Anor (t/a Burghill Valley Golf Club) v Revenue & Customs [2009] UKFTT 119 (TC) (02 June 2009)

Barnett & Anor (t/a Burghill Valley Golf Club) v Revenue & Customs [2009] UKFTT 119 (TC) (02 June 2009)

On the facts, the Appellants retained control over the assets, staff, and operations of the golf club. The Companies lacked independent resources, staff, and effective control. The arrangements were artificial and did not reflect commercial reality. Therefore, the Appellants, not the Companies, made the supplies of sporting services for VAT purposes and are liable for the VAT assessment.

Citation
[2009] UKFTT 119 (TC)
Parties
Appellants: Mrs Phillida Barnett and Mrs Lara Read (t/a Burghill Valley Golf Club); Respondents: The Commissioners for Her Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
02 June 2009
Procedural Posture
VAT Assessment Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Liability, Exempt Supplies, Sporting Services, Corporate Structuring, Doctrine of Abuse
Tax Law VAT Liability Exempt Supplies Sporting Services Corporate Structuring Doctrine of Abuse

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Parties

Mrs Phillida Barnett and Mrs Lara Read (t/a Burghill Valley Golf Club)

Appellants

The Commissioners for Her Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Assessment Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Who made the supply of sporting services for VAT purposes?
  2. 2 Whether the doctrine of abuse applies to the arrangements

Ratio Decidendi

On the facts, the Appellants retained control over the assets, staff, and operations of the golf club. The Companies lacked independent resources, staff, and effective control. The arrangements were artificial and did not reflect commercial reality. Therefore, the Appellants, not the Companies, made the supplies of sporting services for VAT purposes and are liable for the VAT assessment.

Court Disposition

Appeal dismissed

Orders

  • The Appellants are liable for the VAT assessment notified 10 January 2004.
  • No order for costs.