Royal Midland Counties Homes for Disabled People concerns an appeal from the VAT and Duties Tribunal by the charity, called Castel Froma, against Customs’ refusal to zero-rate their purchase of a backup generator. Castel Froma’s argument was that the generator was zero-rated as an accessory under Legal Note 3(c), Group 15, Schedule 8 VATA 1994. The judge agreed with the charity’s analysis. He said that the test was a subjective test, not an objective test as had been found by the Tribunal. One must look at the circumstances in which the taxpayer acquired the particular item to decide whether it was an accessory or not within the meaning of the legislation.

Hugh McKay, appeared for the Appellant