United Kingdom Tax Tribunal Clarifies VAT Treatment of Welsh-Regulated Welfare Services

The United Kingdom First-Tier Tax Tribunal Nov. 7 posted online a judgment in Case No. TC09680, clarifying VAT treatment of Welsh-regulated private welfare services. The taxpayer, a business providing supported living services regulated by Care Inspectorate Wales (CIW), supplied services at sites in Wales. The taxpayer argued that the supplies were standard-rated. HM Revenue and Customs determined that a VAT exemption applied, finding legislative intent to exempt state-regulated private welfare institutions. On appeal, the Tax Tribunal found that: 1) based on a House of Lords speech concerning obvious drafting errors, it was possible for a court to read in “an ...