The Towards Zero Foundation v HMRC

In The Towards Zero Foundation v HMRC [2022] UKFTT 226 (TC) (22 July 2022) the First-tier Tribunal (FTT) decided that free safety testing performed by The Towards Zero Foundation (TZF) was not a separate non-business activity and that input VAT incurred relating to this ‘free testing’ could be recovered.  

TZF is a UK registered charity and its aim is to reduce road fatalities by promoting safe and sustainable mobility.  

One aspect of its work is performing NCAP level car safety testing programmes.  TZF identifies cars it suspects perform below the expected safety standards and subjects these vehicles to crash tests. Once the tests have been performed if the car does not meet the required safety standards TZF will publish the results including on social media. Typically the car manufacturer will want to avoid this negative publicity and thus take measures to improve the safety of the...