Church of England Children’s Society v Revenue and Customs: ChD 29 Jul 2005

The Society sent out free newsletters to its unpaid fund-raisers and supporters. They sought to deduct input tax charged to them from the supplies associated with the costs.
Held: The Society might be able to deduct such tax as residual input tax. The charity did carry on a business and made taxable supplies. The matter would be remitted for consieration of further factual issues. ‘I see nothing odd in treating as a supply, to its fullest extent, a disposal of goods, made otherwise than for a consideration, even where the original input tax has been restricted. It will only have been restricted because it has not been possible to attribute the input costs to an output transaction. But once an output transaction is identified, as paragraph 5(1) of Schedule 4 requires in the circumstances set out in that provision, it is merely a question of identifying the input costs relating to the deemed supply and all else follows’.


Blackburne J


[2005] EWHC 1692 (Ch), Times 21-Sep-2005, [2005] STC 1644




England and Wales


Appeal fromChurch of England Children’s Society v Customs and Excise VDT 8-Jun-2004
. .
CitedKretztechnik AG v Finanzamt Linz ECJ 26-May-2005
Europa Sixth VAT Directive – Supplies for consideration – Share issue – Admission of a company to a stock exchange – Deductibility of VAT).
Kretztechnik’s objects were the development and sale of . .
CitedCustoms and Excise Commissioners v West Herts College ChD 2001
West Herts College produced, printed and distributed prospectuses detailing its courses and facilities. The prospectuses were issued free to students and others. The expenditure producing the prospectuses had been treated by the Commissioners as . .
CitedKuwait Petroleum (GB) Ltd v Commissioners of Customs and Excise ECJ 27-Apr-1999
‘Items’ described as gifts’ which Kuwait Petroleum exchanged under a petrol promotion scheme for vouchers received by customers purchasing petrol were issued ‘free of charge’. The purchase of petrol and the exchange of vouchers for gifts were . .
CitedBLP Group v Commissioners of Customs and Excise ECJ 6-Apr-1995
The use of taxable goods for an exempt transaction disallowed a claim against VAT input tax. The use in that provision of the words ‘for transactions’ shows that to give the right to deduct under paragraph 2, the goods or services in question must . .

Cited by:

CitedOxfam v Revenue and Customs ChD 27-Nov-2009
The charity appealed against refusal to allow it to reclaim input VAT. It also sought judicial review of the decision of the Tribunal not to allow it to raise an argument of legitimate expectation. The charity had various subsidiaries conducting . .
Lists of cited by and citing cases may be incomplete.

VAT, Charity

Updated: 15 July 2022; Ref: scu.229270