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Recent Ruling Update… Where the Vat Solutions ‘Contract Restructuring’ Arrangement Would Provide a More Positive Outcome….

The Lilias Graham Trust (Upper Tribunal decision)

The Lilias Graham Trust, a charity operating residential assessment centres, which support parents with mental health issues in learning how to care for their children, have lost their appeal to the Upper Tribunal regarding VAT exemption regarding accommodation provision….

This recent appeal centred around whether the provision of accommodation for families being assessed and monitored by health professionals and support staff was closely linked to the protection of children and young persons and was, therefore, possibly exempt from VAT.

HMRC (having previously ruled that the accommodation was subject to VAT) took the stance that there was a direct link between the accommodation and exempt welfare services thus exempting the accommodation from VAT. The Lilias Graham Trust disagreed and argued that the provision of accommodation was ancillary to the care and protection of children and was, therefore, excluded from the exemption.

The Upper Tribunal agreed with the First Tier Tribunal and with HMRC that there was a close enough link between the accommodation and the support/assessment services for the accommodation to be treated as exempt from VAT.

Our ‘contract restructuring’ service offers a solution to the above. Through our restructure and implementation process, we give our care operator clients the structural vehicle and ability to reclaim a proportion of VAT incurred on their provision of such accommodation (as well as on other expenditure related to their care provision)...

To find out more….

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