NHS Dumfries & Galloway Health Board v Revenue & Customs

Value Added Tax � (1) Recoverable output tax � Fleming rule/ Section 121 FA 2008 � Principles of quantification� (2) Whether original claim susceptible of amendment � No;� - Appeal allowed in part

Sitting in George House, 126 George Street, Edinburgh on 7, 8 and 9 October and 17-18 December 2013

For the Appellants, David Southern, Barrister; and for the Respondents, Sean Smith, QC and Ian Mowat, Solicitor, Office of the Advocate General for Scotland

By way of introduction Mr Southern on behalf of the appellant addressed us briefly.� He explained the �historical� background to claims of this nature.� Public bodies by and large carried on non-business activities, but commonly also conducted other activities which were within the VAT system.� Thus they could recover input tax and became accountable for output tax.� Where a public body carried on a business , it was treated similarly to a private trader for VAT purposes.

In this context regard had to be paid to changes in eating habits.� There had been a change from �set� meals to sandwich takeaways. �The latter were zero-rated, but were less popular in the 1970�s and 1980�s.� The Tribunal had to consider, Mr Southern submitted, whether his client�s approach and calculations were reasonable and the methodology robust.