Illuminate Skin Clinics Ltd v The Commissioners for HMRC
Decision date: 23 June 2023
Neutral citation: [2023] UKFTT 547 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
Illuminate Skin Clinics Ltd appealed HMRC's denial of VAT exemption for supplies in period 12/16, arguing treatments were medical care. The First-tier Tribunal found the clinic's supplies were not "medical care" within Item 1 of Group 7 Schedule 9 and that Item 4 did not apply for that period; the appeal was dismissed and HMRC's standard-rating and s.73 assessment were upheld.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
The Tribunal held that Item 1 exemption requires supplies to have a therapeutic aim — diagnosis, treatment or cure of disease or a health disorder — and that provision by a registered medical professional alone is insufficient; the supplier bears the burden of proving exemption and sparse or equivocal documentary evidence leads to rejection of the exemption claim. The economic and commercial reality of the supply is a relevant criterion in this assessment.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal commented (non-bindingly) that Item 4 should be read so that "care" is considered alongside "medical" and "surgical" as activities primarily protecting, maintaining or restoring health; that good client experience, psychological support, or completion of consent forms do not by themselves convert cosmetic procedures into exempt medical care; and that proper documentary records (referrals, diagnostic notes, treatment plans) are important evidence to support exemption claims.