FTT Confirms VAT Exemption for Welsh Welfare Services Provided by Cascade Care Limited

• Cascade Care Limited provided residential and supported living services in Wales to adults with mental health conditions and learning difficulties.
• Cascade argued its services were not VAT-exempt because Welsh regulation was not included in the definition of “state-regulated”.
• HMRC disagreed, and the First-tier Tribunal (FTT) ruled that the VAT exemption did apply.
• The FTT interpreted the law to include Welsh primary legislation as “state-regulated”, correcting an “obvious drafting error”.
• Cascade’s appeal was dismissed, marking the second recent case where the FTT applied this interpretive principle in HMRC’s favour.

Source: taxscape.deloitte.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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