HM Revenue & Customs v Jacobs

HM Revenue & Customs v Jacobs

The result required by Note 9 is that the conversion of a non-residential part of a building which already contains a residential part must create an additional dwelling or dwellings in the building as a whole, not exclusively in the non-residential part. The number of dwellings before and after conversion is compared; if there are more after, Note 9 is satisfied. Jacobs is entitled to the VAT refund for works to non-residential parts that resulted in additional dwellings.

Parties
Appellant: Her Majesty’s Revenue & Customs; Respondent: Jacobs
Jurisdiction
England and Wales
Judgment Date
22 July 2005
Procedural Posture
Civil Appeal / Final Appellate Judgment
Outcome
appeal dismissed
Legal Topics
VAT Refund, Residential Conversion, Statutory Interpretation
Tax Law VAT VAT Refund Residential Conversion Statutory Interpretation

Case Brief

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Parties

Her Majesty’s Revenue & Customs

Appellant

Jacobs

Respondent

Procedural Posture

Civil Appeal / Final Appellate Judgment

Legal Issues

  1. 1 Whether a VAT refund is available under section 35 of the VAT Act 1994 for the conversion of a former school into a dwelling with additional staff flats
  2. 2 Proper interpretation of Note 9 to Group 5 of Schedule 8 of the VAT Act 1994 regarding creation of additional dwellings in a building containing both residential and non-residential parts

Ratio Decidendi

The result required by Note 9 is that the conversion of a non-residential part of a building which already contains a residential part must create an additional dwelling or dwellings in the building as a whole, not exclusively in the non-residential part. The number of dwellings before and after conversion is compared; if there are more after, Note 9 is satisfied. Jacobs is entitled to the VAT refund for works to non-residential parts that resulted in additional dwellings.

Court Disposition

appeal dismissed

Orders

  • Decision of the Tribunal restored, subject to assessment of the precise amount of VAT refundable in light of the judgment.