Buildings and construction ― definition of a relevant charitable purpose (RCP)

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Buildings and construction ― definition of a relevant charitable purpose (RCP)
  • When is a building used for an RCP?
  • When is a building used by a charity?
  • When is a building used for non-business purposes?
  • When is a building a village hall or similar?
  • Practical points for RCP buildings

This guidance note looks at the meaning of the term relevant charitable purpose Detailed discussion of the legislation and case law on an RCP is found in De Voil Indirect Tax Service V4 232BC When is a building used for an RCP Use for an RCP means use by a charity either or both for non business purposes as a village hall or similarly in providing social or recreational facilities for a local community VATA 1994 Sch 8 Group 5 Note 6 When is a building used by a charity The meaning of charity in a VAT context is described in the Charities overview guidance note When is a building used for non business purposes There is a long history of case law on whether activities are business activities for VAT purposes It is worth highlighting that just because activities do not make a profit they are not necessarily non business activities Therefore charities can and frequently do have many business activities Business and non business for charities is exp

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