Trans Medium Ltd (t/a Connectivity) v Revenue & Customs [2009] UKFTT 243 (TC) (22 September 2009)

Trans Medium Ltd (t/a Connectivity) v Revenue & Customs [2009] UKFTT 243 (TC) (22 September 2009)

The Appellant does not qualify as an 'eligible body' under Note (1)(e) to Group 6, Schedule 9, VAT Act 1994 because, despite a memorandum clause prohibiting profit distribution, the facts show that profits were distributed to the directors as remuneration, and the organisation was run for their benefit.

Citation
[2009] UKFTT 243
Parties
Appellant: Trans Medium Limited (t/a Connectivity); Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
22 September 2009
Procedural Posture
VAT Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Exemption, Definition of Eligible Body, Education and Vocational Training, Profit Distribution, Directors' Remuneration
Tax Law VAT VAT Exemption Definition of Eligible Body Education and Vocational Training Profit Distribution Directors' Remuneration

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Parties

Trans Medium Limited (t/a Connectivity)

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether the Appellant qualifies as an 'eligible body' for VAT exemption under Group 6, Schedule 9, VAT Act 1994
  2. 2 Whether directors' remuneration constitutes distribution of profit preventing eligibility

Ratio Decidendi

The Appellant does not qualify as an 'eligible body' under Note (1)(e) to Group 6, Schedule 9, VAT Act 1994 because, despite a memorandum clause prohibiting profit distribution, the facts show that profits were distributed to the directors as remuneration, and the organisation was run for their benefit.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.