The Catholic homeless charity Anchor House has won a major battle against HM Revenue and Customs concerning a VAT bill.
The decision means that 25 new flats for homeless people in London can now be opened for use.
Last year HMRC billed the homelessness charity £1 million in VAT for a property it owned in Newham, east London, which the charity intended to use as moving-on flats for homeless people.
HMRC changed the designation of the building, in Newham, to that of a “residential and life skills centre” rather than a “homeless hostel” after the charity updated the description on its website about the services it provided, while insisting the use of the development had not altered fundamentally.
