This brief explains HMRC’s position following the judgment of the Court of Appeal in the joint appeals of LIFE Services Ltd and The Learning Centre (Romford) Ltd and the Supreme Court’s decision to refuse leave to appeal on 15 January 2021.
The cases concerned the VAT liability of daycare services provided by private bodies to vulnerable adults in England. The earlier decisions of the Upper Tribunal were affirmed in both cases.
This confirms that HMRC’s view of what the legislation means is correct. Providers must be charities, public bodies or regulated by the relevant authority in the country concerned, in order to be able to exempt their supply of services.
Source: gov.uk
