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Official guidance
VAT Trade Unions and Professional Bodies

VTUPB5000 · Trade unions and professional bodies: Item 1(c) branch of knowledge / professional expertise

  • VTUPB5100 · General
  • VTUPB5200 · Advancement of a particular branch of knowledge
  • VTUPB5300 · Fostering professional expertise
  • VTUPB5400 · Primary purpose
  • VTUPB5500 · Past or present professions or employment of members
  • VTUPB5600 · Professions or employments directly connected
  1. Trade unions and professional bodies: Item 1(c) branch of knowledge / professional expertise: contents
  2. Trade unions and professional bodies: Item 1(c) branch of knowledge / professional expertise: Past or present professions or employment of members

VTUPB5500 | Trade unions and professional bodies: Item 1(c) branch of knowledge / professional expertise: Past or present professions or employment of members

From HM Revenue & Customs · VAT Trade Unions and Professional Bodies

A further criterion for exemption under “Item 1(c)” is that the branch of knowledge being advanced or the expertise being fostered must be “connected with the past or present professions or employments of its members”. Therefore, an association with the “primary purpose” of advancing a branch of knowledge amongst the public generally would not qualify for exemption if its membership lacked this “employment connection”. This was made apparent in the “Organic Farmers case”, where the tribunal stated that the body would only:

“… fall into this class of association” (“Item 1(c)” of “Group 9”) “if”

“(a) its primary purpose is the advancement of a particular branch of knowledge and

(b) that branch of knowledge is connected with the past or present employments of its members.”

We would not withhold exemption if a small proportion of the membership lacked the “employment connection”.

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