Paradise Wildlife Park Limited v The Commissioners for HMRC
Decision date: 10 February 2023
Neutral citation: [2023] UKFTT 122 (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
This appeal concerned whether construction work at Paradise Wildlife Park (lion enclosure and World of Dinosaurs) was zero-rated for VAT. The tribunal found that the charitable park (ZSH) carried on a business by operating and charging admission, that the works were intended at least partly for that business (so not solely for non-business charitable purposes), and that the outdoor dinosaur walk is not a "building". The appeal was dismissed and zero-rating did not apply.
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
Where an organisation charges admission calculated with reference to cost, derives a significant proportion of income from admissions and operates regularly in a manner akin to a commercial operator, those factors indicate an economic activity or business for VAT purposes; and a structure lacking enclosure by walls/roof and not naturally described as a building will not qualify as a "building" for construction zero-rating.
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 noted (obiter) that the statutory deeming in s.94(2)(b) (treating admission to premises as a business) may have limits and does not automatically create a business in every case, and that reorganising as a charity without tax-driven motives does not prevent commercially operated fundraising activity.