Summary
The Appellant appealed, as a third party, against the decision of HMRC to raise an assessment for £133,333.33 of output tax, on the sale of a property against the seller, the Trustees of the Book Production Consultants Retirement and Death Benefit Scheme. HMRC said that the Appellant’s declaration that it intended to use the property for ‘relevant charitable purposes’ was incorrect and therefore invalid. This was because the Appellant rented out part of the property and this constituted a business activity.
As the seller had opted to tax the property the requirements allowing the disapplication of the option to tax for supplies where a property is to be used solely for non-business purposes, had not been met and the supply was, therefore, taxable.
The grounds of the appeal were that the Property was used in the fulfilment of the charity’s core
