RCB/37/10 VAT—leisure trusts providing all inclusive membership schemes

Part V16 Forms and other HMRC material

RCB/37/10 VAT—leisure trusts providing all inclusive membership schemes

RCB/37/10 VAT—leisure trusts providing all inclusive membership schemes

Revenue & Customs Brief, Issue 37. 3 September 2010

The issue

With effect from 1 April 2009 HM Revenue & Customs (HMRC) amended its interpretation of the law and therefore its guidance on the VAT treatment of membership schemes allowing unlimited access to leisure facilities in a leisure centre. Businesses that will be most affected are community leisure centres that are run by non-profit making trusts. Supplies made by commercial organisations are not affected and remain taxable at the standard rate.

The purpose of this Brief is to share the draft legislation and provide guidance on how the reverse charge for emissions allowances will operate.

This Brief cancels Revenue & Customs Brief 50/07 (RCB/50/07, Divison V16.3) and Revenue & Customs Brief 13/09 (RCB/13/09, Division V16.3).


Supplies of services closely linked with and essential to sport or physical education, in which an individual takes part, are exempt from VAT when supplied by an “eligible body” (essentially a non-profit making body not subject to commercial influence) as set out in VATA 1994, Schedule 9, Group 10 (Sport, Sports Competitions and Physical Education). Prior to 1 April 2009 HMRC's view was that where a scheme offered, over a period, unlimited use of a variety of both taxable and exempt facilities, typically in return for a monthly or annual payment, there was generally a single supply of the standard-rated right to use the facilities. However, following representations from the leisure industry and taking into account the comments made in the Court

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial