Twycross Zoo East Midland Zoological Society v Her Majesty's Revenue & Customs

Facts

Twycross Zoo East Midland Zoological Society is a charitable zoological society, founded in 1963 and registered as both a limited company and a charity, which operates Twycross Zoo in Leicestershire. The zoo occupies 88 acres, attracts half a million visitors a year, has a turnover of some £4.5 million, and houses one of the largest primate collections in the world. Alongside its main activity of animal viewing, for which it charges admission, it operates four cafés, two shops, kiosks, a mini railway, conference facilities and schemes for adopting animals and animal encounters. In May 2004, following the decision of the Court of Justice of the European Communities in Commissioners of Customs & Excise v Zoological Society of London, the Commissioners accepted that the Society's admission charges were exempt under item 1 of Group 13 to Schedule 9 to the Value Added Tax Act 1994. The Society then reclaimed overpaid output tax and made input tax claims, contending that its expenditure on keeping the animals — enclosures, repairs, veterinary services, cleaning, food and bedding — was residual input tax attributable both to the exempt admissions and to its taxable supplies of catering and merchandising. The Commissioners rejected the residual claims by letter of 27 August 2004, and the Society appealed to the tribunal.