The decision in Eynsham Cricket Club reaffirms that the construction of buildings can be zero-rated when the dominant purpose is to provide facilities for members or beneficiaries of a charity, and where the facility will be managed by the charity and not the community. However, it also confirms that a body registered only as a Community Amateur Sports Club (CASC) does not qualify to be treated as a charity for VAT purposes.

Eynsham Cricket Club is a CASC and not a charity. It had constructed a new pavilion which would be used not only for cricket-related activities, but by other sections of the local community. It claimed that the construction should be zero rated under VATA 1994 Schedule 8 Group 5 Item 2a; “The supply in the course of the construction of a building intended for a relevant charitable purpose.” Note 6 to this part of the legislation defines relevant charitable purpose as being used by a charity otherwise than in the course or furtherance of business; and/or as a village hall or similarly in providing social or recreational facilities for the local community.