A LOCAL group has won relief from a threatened £12,000 tax bill.

The Fairfield Association renovated a children's play area in Lancaster to transform it into a haven for kids.

Residents raised more than £20,000 and secured an £81,000 lottery grant to complete the project.

But the group was shocked when it received a tax bill from Customs and Excise because it said the play equipment did not qualify for tax relief.

Only a few months before the group sought advice from the taxman, who said it would be exempt from VAT.

But following an appeal in the Citizen and by the Environmental Organisation, Customs and Excise has backed down - and decided VAT does not apply.

It also says it will give a 'cash gesture' as compensation for incorrect advice.

"We are really relieved," says Jules Coleman, chairman of the Fairfield Association.

"It feels right that Customs and Excise have offered to pay for the incorrect information they gave out," she says.

"We did receive massive support as a result of the Citizen article and now we can just get on with enjoying our new playground, which is massively popular."

The association's next project is to develop an Urban Nature Reserve.

The Fairfield organisation was set up in 1996 as a charity with the aim of conserving and enhancing green space in the area and has undertaken a number of projects.