Summary 

The appellant sold two types of passes, the London Pass (LP) and the London Explorer Pass (LEP), both of which entitle the purchaser to enter various attractions and use certain forms of transport in London without further payment. These attracted both zero-rated and standard-rated VAT, but the proportion was not known at the time of issue. The LP and the LEP are priced at a discount compared to the gate prices of the attractions. Any unredeemed amounts on the pass were treated as not being consideration for a supply. 

Background 

The appellant launched the pass in 1999, and HM Revenue and Customs (HMRC) originally accepted it was a ‘face value voucher’ under the VATA 1994, Sch 10A, but later changed its view. The appellant appealed and in 2007 lost at the VAT Tribunal and the High Court. The appellant then amended the terms of the pass, but HMRC still did not accept it was a.