CSE3870 - How the conditions are to be interpreted: ‘Directly Necessary’ services: Members partially exempt: what happens if no apportionment is made? (guidance effective from 15 August 2018)

Where the CSG is unable, or does not want, to apply an apportionment to any of these services it must tax them all at the standard rate. If some members provide information enabling an apportionment and others do not, the exemption can be applied to the former’s ‘directly necessary’ services but not the latter.