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Where Taxpayers and Advisers Meet

Charitable Trust & VAT

thompsi
Posts: 2
Joined: Tue Nov 06, 2018 1:51 pm

Charitable Trust & VAT

Postby thompsi » Tue Nov 06, 2018 2:45 pm

Our village field is run by a charitable trust. The village Parish Council is independent of the “field trust” and to date has no interest in the field.
We know that there is no requirement for charitable trusts to pay capital gains tax or council tax, although they are obliged to pay VAT.

The field committee want to buy a new swing and climbing frame for the field at a cost of £15,000 plus VAT. Would it be legal for the parish council, which is VAT registered to purchase this equipment, retain title and install it in the field. The Parish Council could of course reclaim the VAT. The village field committee might well then make a donation towards the cost of the full £15,000 to the parish council! Provided that the parish council retains title and all of the obligations associated with repair, insurance etc of the equipment would this be legal. It smacks of VAT evasion to me?

les35
Posts: 526
Joined: Wed Aug 06, 2008 3:09 pm

Re: Charitable Trust & VAT

Postby les35 » Wed Nov 07, 2018 7:55 pm

This might work; you should read VAT Notice 749 which deals with the way Parish Councils can reclaim VAT.

If the Council is a subscriber to the national body SLCC, there is a VAT Specialist who will be able to help.

thompsi
Posts: 2
Joined: Tue Nov 06, 2018 1:51 pm

Re: Charitable Trust & VAT

Postby thompsi » Thu Nov 08, 2018 8:44 am

Many thanks for your reply. We'll follow up on your advice!

Ian Thompson


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