Cosmo Leisure Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 25 February 2011
Neutral citation: [2011] UKFTT 143 (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 Cosmo Leisure could deduct admission charges from bingo receipts for bingo duty. The tribunal held that identifiable entrance fees (shown on swipe‑card receipts and understood by members) could be deducted, but unspecified or notional admission amounts embedded in all‑in bingo book/terminal charges could not and are treated as payments for entitlement to participate. The appeal was therefore allowed in part.
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
An admission fee is deductible from bingo receipts only where the actual amount of the admission is clearly identified to attendees (for example by specified charges on receipts or transparent notices); composite or all‑in charges that include an unspecified or notional admission component will be treated as bingo receipts (payments in respect of entitlement to participate) unless the admission element is separately identified and disclosed.
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 that clubs providing substantive non‑bingo facilities (bar, catering, gaming machines, social meeting) may have a remainder of receipts not attributable to bingo, and that HMRC/VAT guidance encouraging allocation of composite charges to admission first is of practical relevance but does not remove the requirement for clear identification of admission amounts.