In Leicester City Council v HMRC  TC8060, the First Tier Tribunal (FTT) dismissed the Council's appeal that a VAT claim was an amendment to an earlier claim. The claim was considered a new claim and thus was made out of time.
- The Council became aware in 2008/2009 that the supply of Sports Facilities by councils may not be liable to VAT.
- On 25 March 2009, the Council wrote to HMRC to reclaim output tax it believed had been over-declared on sports and leisure facilities from 1973 to November 1996 totalling £3.3 million.
- The claim was rejected by HMRC.
- Between 2009 – 2017, the Council had submitted several catch-up claims some of which related to its golf course and sports parks income.
- In 2017, the Court of Justice of the European Union (CJEU) confirmed the validity of such sports claims.
- HMRC accepted Leicester Council’s 2017 claim but limited the claims to four years as earlier years were Out of time.
- The Council argued that the claim was an amendment to an existing claim rather than a new claim, hence was not made out of time for earlier years, and Appealed to the FTT.
- The FTT held that the 2017 claim was the first time the Council had mentioned golf and sports parks, so even though some of the earlier claims had been sporting related, the connection was not close enough to be considered an amendment to the existing claim.
The appeal was dismissed.
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Sports and physical recreation
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Time limits for making claims & adjustments
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How to appeal an HMRC decision
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