In Ingliston Driving Experiences Ltd v HMRC [2025] TC09528, the First Tier Tribunal (FTT) found that for VAT purposes, ‘supercar driving experiences’ were a supply of a right of admission to a facility similar to a fair or amusement park. COVID-19's temporary reduced rating applied.
This case considered whether the experiences were the supply of a right of admission for the purposes of the Temporary reduced-rating for hospitality and tourism, introduced during the coronavirus pandemic.
- Ingliston Driving Experiences Ltd (‘Ingliston’) provided experiences at off-road venues where a member of the public could drive or be driven at high speeds in ‘supercars’.
- Ingliston owned 18 supercars, 16 of which were two-seaters and two were four-seaters.
- On an experience day, 12 cars were usually on a race circuit simultaneously. Only drivers and passengers who had purchased an experience were entitled to enter the race circuit, but they could also stand in an observation area behind a fence, which was accessible to the non-paying general public.
- In July 2020, following the introduction of the temporary reduced rate of VAT, at 5%, for certain supplies of hospitality, holiday accommodation and admissions to certain attractions, Ingliston applied the reduced rate of VAT to its supplies.
- HMRC issued an assessment of £31,794 for the quarter to 31 October 2020 on the basis that Ingliston’s supplies were standard-rated because they did not qualify for reduced-rating.
- Ingliston appealed to the First Tier Tribunal (FTT).
The issue considered in this appeal was whether the supplies qualified for the reduced rating under Item 1, Group 1,6 Schedule 7A VATA 1994:
- Item 1: Supplies of a right of admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities, but excluding any supplies that are exempt supplies under Items 1 or 2 in Group 13 of Schedule 9.
The FTT found that:
- Ingliston’s supplies were a ‘right of admission’ in that they allowed a paying customer to enter the race track.
- Customers were paying for admission so that they could enjoy driving or being driven in a high-powered car.
- Whilst Ingliston provided instruction and supervision, this was so that customers could enjoy their driving experiences safely, rather than as an end in themselves.
- The core of Ingliston’s business was to provide fun and enjoyment, not to teach any driving skills.
It was common ground that Ingliston was not supplying a right of admission to a show, theatre, circus, fair, amusement park, concert, museum, zoo, cinema, or exhibition, but the question in dispute was whether it was supplying a right of admission to a ‘similar cultural event or facility’.
- The FTT’s overall impression was that the facility provided by Ingliston was similar to a fair or amusement park in that members of the public attended Ingliston’s event days with the purpose of having an enjoyable day out.
- Many, or most, fair and amusement park rides share the features of speed, thrills and excitement with Ingliston’s experiences, and others (such as dodgems and go-karts) were even more similar in that customers could drive vehicles themselves.
The appeal was allowed.
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