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RHONDDA VAT VICTORY COULD BENEFIT ALL COUNCILS

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Rhondda Cynon Taff CBC has won a landmark legal victory over VAT, which could save councils all over the UK million...
Rhondda Cynon Taff CBC has won a landmark legal victory over VAT, which could save councils all over the UK millions of pounds in the running of cemeteries.

The Western Mail (p13) reports that a recent VAT appeal tribunal case, the council argued that the maintenance and running of cemeteries should continue to assessed as a non-business activity. The decision has saved the council£500,000.

Tax experts from accountants Ernst and Young played a leading role in preparing the council's case. The firm's director of VAT in Cardiff, Bill Petty, said: 'This is an important win. Local authorities would have faced budgeting for hundreds of thousands of pounds in irrecoverable VAT costs if HM Customs and Excise has succeeded in establishing that the operation of cemeteries was an exempt business activity.'

Pauline Jarman, leader of the council, said: 'I am deeply reassured by this decision. By taking the initiative and raising this appeal, Rhondda Cynon Taff has saved more than half a million pounds which would otherwise have been diverted from frontline services.'
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