Commentary

BB/12A/06 VAT—partial exemption – VAT deduction by theatres on production costs

Part V16 Forms and other HMRC material

BB/12A/06 VAT—partial exemption – VAT deduction by theatres on production costs

BB/12A/06 VAT—partial exemption – VAT deduction by theatres on production costs

Business Brief, Issue 12. 21 August 2006

This Business Brief article announces HMRC's decision to appeal to the Court of Appeal the High Court decision in the case of Mayflower Theatre Trust Ltd (MTT) ([2006] EWHC 706 (Ch)). It also provides guidance for theatres affected by the High Court decision.

Background

As a result of HMRC's revised policy on the application of the cultural exemption announced in Business Brief 28/03, many theatres claimed exemption for their supplies of admission. In making claims for output tax previously charged in error, theatres had to also adjust their input tax deduction. This led to disputes

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