Next Generation Clubs Limited v The Commissioners for HMRC
Decision date: 29 June 2026
Neutral citation: [2026] UKFTT 976 (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
The Tribunal considered whether multi-facility leisure-club memberships (David Lloyd Clubs) fell within Group 16 of Schedule 7A (the TRR) as "rights of admission to ... similar cultural events and facilities." After detailed factual findings the Tribunal held the supplies were not similar to any specific item in Group 16 nor to the list as a whole, and that the memberships were rights of access (regular use) rather than rights of admission; the appeal was dismissed.
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
When testing whether a supply falls within Group 16 similarity must be assessed first against specific listed items and, if not similar, against the common characteristics of the list as a whole. Relevant common characteristics include a main attraction that is the primary draw, an extraordinary (not ordinary day-to-day) experience for the average consumer, and public access by payment of admission; a multi-component membership intended for regular, everyday use ("third space") will typically not meet that test.
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 observed (obiter) that fiscal neutrality considerations may inform how "similarity" is understood but cannot be used to expand the statutory list beyond its words; limited photographic evidence of landscaping is insufficient to characterise a site as an "amusement park" and ongoing capacity-based membership restrictions distinguish closed clubs from publicly accessible attractions.