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Item 1(d), Group 9, Schedule 9, VATA 1994

“Item 1(d)� contains three main criteria that have to be satisfied by an association before exemption can be granted:

• a “primary purposeâ€� to “make representationsâ€�;
• these “representationsâ€� being “to the governmentâ€� and
• “in the business or professional interests of its membersâ€�.

Primary purpose� to make representations

You should apply the same tests to establish the association’s “primary purpose� that are used to establish the “primary purpose� when exemption is claimed under “Item 1(c)�. The key elements or principles to be taken into account are:

• the objects / objectives set out in the association’s memorandum and articles of association or constitution;
• the powers and activities of the association.

The procedure is the same as that described in VTUPB5400.

To the government

The “representations� should be to the UK government.

Business or professional interests of its members

The “representations� must relate to legislation or public matters affecting the members� “business or professional interests�.

Note (5) to Item 1, Group 9, Schedule 9, VATA 1994

“Note (5)� to the exemption group contains a further criterion that an association must satisfy before exemption can be permitted under “Item 1(d)�: namely, that the member individuals and corporate bodies must be restricted “wholly or mainly� to those with professional or business interests “directly connected with the purposes of the association�. Unlike “Items 1(b)� and �1(c)�, members are typically not individuals. Again, you should use 75% as the benchmark for what constitutes “wholly or mainly�.

The members business or professional interests must be directly connected to all the purposes of the association. Furthermore, the rules or its practice should be to restrict eligibility for membership.