A museum dedicated to the life and work of the late author Roald Dahl has won a partial victory over HMRC in a dispute over VAT.
The museum paid VAT on some expenditure incurred in refurbishing or maintaining museum exhibits. It argued that this VAT should be treated as residual input tax for purposes of the partial exemption calculation, as the expenditure in question has a direct and immediate link “not only with the museum’s exempt supplies of admissions to the museum, but also with taxable supplies made in the museum shop.”
HMRC rejected the VAT claim, saying that the VAT should treated as exempt input tax.
The museum appealed, arguing that VAT relating to exhibition costs was incorrectly categorised. It attempted to recover £2,632 which it h...