Main Content Jump to Footer

Nuffield establishes principle for charities on recovery of VAT

Fri, 8 February 2008

The Nuffield Foundation applied to HM Revenue and Customs for recovery of VAT incurred on its investment management fees where the investment income was used to support its taxable business activities. HMRC have accepted this principle.

This decision by HMRC follows on from the case established by the Children’s Society that VAT incurred on costs relating to the fundraising expenditure to support a charity’s wider activities should be recoverable to the extent that these wider activities include any VATable activities.

The Foundation is registered for VAT because it is a publisher of books in the fields of education and bioethics.

Saffrey Champness advised the Foundation on this case and acted on its behalf. They were instrumental establishing the principle in the Children’s Society case. As a matter of policy we do not use our auditors for non audit work.

Last Updated Fri, 14 March 2008