Commentary

V4.266 Definitions—donated goods, advertising and medicinal products

Part V4 Exemption, zero-rating and reduced rates

V4.266 Definitions—donated goods, advertising and medicinal products

V4.266 Definitions—donated goods, advertising and medicinal products

This paragraph examines definitions relevant to the zero-rating extended to certain supplies to and by charities and which is conferred by VATA 1994 Sch 8 Group 15. In particular, it considers definitions of the following:

For the items which are zero-rated under this group, see V4.266A.

For an overview of zero-rating in connection with charities and non-profit bodies more broadly, see V4.261.

  1.  

    •     care

  2.  

    •     charity

  3.  

    •     eligible body

  4.  

    •     relevant goods

  5.  

    •     disabled

  6.  

    •     handicapped

  7.  

    •     hospital

  8.  

    •     profits-to charity person

  9.  

    •     relevant establishment

  10.  

    •     specified person

Meaning of 'care'—donated goods, advertising and medicinal products (zero-rating)

The term 'care' is relevant for VATA 1994, Sch 8, Group 15, Items 4–7 and 9 (see V4.266A).

In C & E Comrs v Help The Aged1 the court upheld the tribunal's view that the provision of care did not have to be a special function of the charity nor did it need to be provided solely for disabled persons. Further, the court upheld the tribunal's definition of 'care' as including the caring provision of transport by giving the word its ordinary English meaning and rejecting the contention that it was restricted to health or nursing care only.

Meaning of 'charity'—donated goods, advertising and medicinal products (zero-rating)

For the definition of 'charity' in the context of VATA 1994, Sch 8, Group 15, see V1.299. The definition of charity is relevant to all items within this Group (for which see V4.266A).

HMRC states in Notice 701/1/192 that a 'body is

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