VAT & Pyramids
We were introduced to The Pyramid at Anderston (“The Pyramid”), a charity which owns and operates a large property just out of Glasgow City Centre. It lets offices to local businesses and other charities; hires space to a range of activity providers; and produces its own community events, activities, and support. The Pyramid also runs a community shop that offers members low-cost food options, a key charitable activity and service for locals during the ongoing cost of living crisis and a time of financial uncertainty for many.
The Pyramid had already begun the £multi-million capital redevelopment of its iconic listed building, with Stage One costing £1.5m and Stage Two budgeted for significantly more. The range of Pyramid activity created a complex situation. The charity was not VAT registered and did not understand the options that were available to it in terms of the tax, and what could be done to maximise VAT recovery.
The Pyramid is a community space in the heart of Anderston, Glasgow.
We were engaged to provide such advice, which culminated in a recommendation to opt to tax the property. However, this was a complicated situation, as the organisation did not meet the conditions for automatic permission to opt to tax. After several months VITA successfully obtained HMRC’s permission – which is not a common process.
This will lead to a significant cash injection for the charity. Our client found the assistance incredibly valuable, beyond just the monetary impact. The Pyramid is now planning to provide a consultancy service for charities and community groups which are also taking on disused buildings as community assets across the country.
Recognising the value of our support The Pyramid now refers us to other organisations who will likely require assistance from the outset of their transactions.
“We felt we weren’t getting anywhere in terms of VAT recovery until we met with VITA. We have appreciated their sound advice and support, which demystified the process. They helped us to make the right decisions for our organisation and achieve a positive outcome.”
