Great Yorkshire Show organisers 'delighted' after charitable status secured in £300,000 tax battle

A Yorkshire Agricultural Society spokesperson said: “We are obviously delighted with the decision to uphold our appeal.

“The financial implications are significant for the Society, which as a registered charity works hard throughout the year to support and promote agriculture and allied industries.”

HMRC argued on the basis that the 2016 and 2017 Great Yorkshire Show had not been clearly advertised as fundraisers, and that their purpose as fundraisers was not clear on tickets, programmes and other literature.

Judge Christopher McNall ruled in favour of Yorkshire Agricultural Society, noting: “HMRC's point that the wording does not say ‘fund-raising for’ but says that the Show ‘contributes to [the Society's] funds’ is semantic and unattractive.

“The test is substantial and not formal. In this regard, HMRC are seeking, wrongly, to establish a distinction where there is in reality no difference.”

The society appealed to the tribunal on the basis that the assessment raised by HMRC was invalid due to the show’s charitable status, and that its assessment had been raised outside the time limits required for such a request.

A HMRC spokesperson said: “We are carefully considering the judgment and reviewing how we have handled this case.”

The case was brought forward after Yorkshire Agricultural Society made a claim for what it considered to be overpaid VAT totalling £201,949 for its 2016 show, on the basis that the show should have been treated as exempt due to its nature as a fundraiser.

It also stated that it had treated the 2017 show as exempt from VAT.

HMRC refused this repayment, and assessed Yorkshire Agricultural Society on admission, sponsorship and advertising income for the show, requesting a further payment of £90,776.

Paul Russell, VAT tax director at consulting firm RSM UK, said: “This is a great outcome for the Yorkshire Show. The organisers will no doubt be delighted with the result but it may be tinged with frustration as to why this had to go all the way to court to be resolved.

“Litigation is often expensive and it can ultimately result in general taxpayers footing the bill. There are often alternative routes HMRC can explore to resolve cases like this. Unfortunately we do see some weak cases involving VAT being litigated by HMRC and the Yorkshire Show seems to have been a victim of this.”

The Great Yorkshire Show is held every July in Harrogate, North Yorkshire, and is the largest agricultural show in England, welcoming around 140,000 people per year.

In 2021, the show was visited by the now King Charles - who is a patron of the society - and wife Queen Camilla.

Queen Elizabeth II was also the first female patron of Yorkshire Agricultural Society, and remained so from 1952 to 1997.