The Upper Tribunal (UT) has rejected an appeal by the Scottish Football League2 over the VAT treatment of gold medals awarded to league champion clubs. The First-tier Tribunal (FTT) ruled that the medals were business gifts and hence VAT was due on them and HMRC’s approach of disallowing input VAT where no output tax was paid on the disposal of the medals was acceptable. The UT criticised the FTT’s focus on treating the medals as “business gifts”, preferring the conclusion that the medals were “business assets” of the Scottish Football League and that output VAT was due on them when they were disposed of without express payment being made for them. An argument that output VAT on the medals was included in the general output VAT paid by the Scottish Football League and that the cost of the medals was a component of the taxable supplies made by it as a whole was rejected.

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