This was an appeal to the Upper Tribunal against as decision by the First-tier Tribunal (FTT) dismissing the appeal against a decision by HMRC that the appellant was not entitled to treat construction services supplied to them for the building of a cricket pavilion as zero-rated. 

The provision in the VAT Act 1994 providing for zero-rating to apply to the construction of a building intended for use only for a ‘relevant charitable purpose’ required that the building had to be used by a charity either ‘otherwise than in the course or furtherance of a business’ or ‘as a village hall or similarly in providing social or recreational facilities for a local community.’ The appellant was registered as a Community Amateur Sports Club (‘CASC’) within the meaning of the Corporation Tax Act 2010. 

The basis of the FTT’s finding