»Ê¹ÚÌåÓýapp

Automobile Association 1974 STC 192
Friends of the Ironbridge Gorge Museum VTD 5639
Swindon Masonic Association Ltd VTD 682

Please note that the following material is not a full summary of the case - it merely highlights the principle referred to in the appropriate section of this manual.

Automobile Association 1974 STC 192

HMRC argued that members� subscriptions should be wholly standard-rated. This was because they were consideration for a single supply, which was the grant of membership.

»Ê¹ÚÌåÓýapp Court held that the subscriptions were payment for supplies of the individual benefits and advantages. As a result the subscriptions had to be apportioned according to the relevant individual liabilities.

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Friends of the Ironbridge Gorge Museum VTD 5639

»Ê¹ÚÌåÓýapp object of the Friends was to raise money to support the Ironbridge Gorge Trust Limited. »Ê¹ÚÌåÓýapp Trust maintained and ran the Ironbridge Gorge historical site and museum. »Ê¹ÚÌåÓýapp Museum offered token benefits, such as reduced entrance fees to the site, to members of the Friends. People applying to join the Friends were told that half of their subscriptions were to be donated to the Museum.

»Ê¹ÚÌåÓýapp tribunal held that the Friendsâ€� Organisation was not brought within the scope of section 94(2)(a) of the VAT Act 1994. This is because anything that the members of the Friends received was supplied by the Museum.

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Swindon Masonic Association Ltd VTD 682

»Ê¹ÚÌåÓýapp association owned the freehold of a building designed for use by the freemasons of Swindon. Three sources of income were identified. »Ê¹ÚÌåÓýappse were donations from lodges, expenses reclaimed from lodges and association receipts.

»Ê¹ÚÌåÓýapp tribunal found the donations from lodges and association receipts to be outside the scope of VAT. This was because no supply was made in return for the payments. »Ê¹ÚÌåÓýapp expenses reclaimed from the lodges were found to be consideration for supplies of services, but exempt as a right over land under Group 1 of 5 to the Finance Act 1972 (now Group 1 of Schedule 9 to the VAT Act 1994).