Council faces bill over VAT row

The card includes access to swimming pools

Highland Council has revealed it now owes £140,000 in VAT after losing an appeal on how it should be taxed for selling one of its leisure cards.

The authority and HM Revenue and Customs had been in dispute over what VAT should be paid on the High Life All Inclusive version of the card.

Lord Penrose, a judge sitting at the Court of Session, has refused Highland Council's appeal.

The council said the decision will mean a "rethink" of the scheme.

'Particularly proud'

A spokeswoman said: "The effect for Highland Council's education, culture and sport service is that we now owe £140,000 in VAT that we didn't think we should.

"It will mean a rethink of a scheme of which we are particularly proud as it concentrates on encouraging use of leisure facilities by families who are financially disadvantaged."

The card gives unlimited use of gyms and swimming pools as well as activities in the High Life scheme.

The dispute did not involve the other two High Life cards on offer and are sold on a budget and pay-as-you-go basis.