Stuart Tranter t/a Dynamic Yoga v The Commissioners for Her Majesty's Revenue & Customs, TC 04071
| Jurisdiction | UK Non-devolved |
| Judge | Swami RAGHAVAN |
| Judgment Date | 15 October 2014 |
| Neutral Citation | [2014] UKFTT 959 (TC) |
| Respondent | The Commissioners for Her Majesty's Revenue & Customs |
| Appellant | Stuart Tranter t/a Dynamic Yoga |
| Reference | TC 04071 |
| Court | First-tier Tribunal (Tax Chamber) |
[2014] UKFTT 959 (TC)
TC04071
Appeal number: TC/2013/00232
VAT – exempt supplies –supply of private tuition by an individual teacher
acting independently – tuition in yoga – whether tuition in a subject
ordinarily taught in a school or university – no – supplies of tuition services
chargeable to VAT - Item 2, Group 6, Schedule 9 VATA 1994 – appeal
dismissed
FIRST-TIER TRIBUNAL
TAX CHAMBER
STUART TRANTER t/a DYNAMIC YOGA Appellant
- and -
THE COMMISSIONERS FOR HER MAJESTY’S Respondents
REVENUE & CUSTOMS
TRIBUNAL:
JUDGE SWAMI RAGHAVAN
MS HELEN MYERSCOUGH
Sitting in public at 45 Bedford Square, London on 15 January 2014
John McCabe and Douglas Cully of Coastal Tax and Accountancy for the
Appellant
Erika Carroll and Lynne Ratnett, HMRC officers for the Respondents
© CROWN COPYRIGHT 2014
DECISION
Introduction
1. The appellant runs a yoga studio at which a number of instructors, including the 5 appellant teach yoga. HMRC made a decision that the appellant’s tuition in yoga is
not a supply of tuition “in a subject ordinarily taught in schools or universities” and
that it was not therefore exempt under item 2, Group 6, Schedule 9 of the Value
Added Tax Act 1994 (“VATA 1994”). The appellant’s appeal is against that decision.
2. The appellant argues his supplies of yoga meet the statutory definition. Yoga is 10 taught in a large number of schools and universities and the yoga taught there
corresponds to the yoga taught by the appellant.
3. HMRC disagree. Yoga is not educational but recreational. It is not a subject
which is ordinarily taught in schools or universities and, in any case, to the extent
yoga is practised in certain schools, the aims and objectives of the yoga as taught by 15 the appellant and the environment in which he teaches it differ significantly.
Evidence
4. We heard oral evidence from the appellant which was subject to cross-
examination. The Tribunal also had the opportunity to ask questions. The appellant
was a credible witness. In addition we had before us two bundles of documents 20 containing correspondence between the parties and which included materials from
various schools, colleges and a university relating to yoga, details of the assessment
and subject matter relating to the GCSE in Physical Education which mentioned yoga,
a survey carried out on attendees at the yoga studio, and information provided on the
appellant’s website. 25
Stuart Tranter and the yoga he teaches
5. Mr Tranter is a full time yoga teacher and has been doing this for the last 18
years. The level of student he teaches ranges from complete beginners through to the
advanced yogi student. The age of those he teaches ranges from 8 years to those in
their eighties. 30
6. He is extremely passionate about the subject. He started off in a church hall.
Five years ago he started to train teachers. Now he has a large studio open 7 days a
week. He tries to promote a relaxed, laid back atmosphere with fun. As part of the
classes he talks about health aspects of yoga to make students aware of the importance
of moderation. In the course of his classes he also talks to students about the origins 35 of yoga.
7. Yoga consists of eight “limbs” (to use the term that Mr Tranter used). The lower
(physical) four are essential to the higher four (which included meditation,
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