Barkas v Revenue & Customs [2013] UKFTT 186 (TC) (13 March 2013)

Barkas v Revenue & Customs [2013] UKFTT 186 (TC) (13 March 2013)

Condition 6 did not prohibit the separate use or disposal of the dwelling; it only restricted the use of the commercial building. Practical effects or intentions do not amount to a legal prohibition. Therefore, Note 2(c) was satisfied and the VAT refund claim should be allowed.

Citation
[2013] UKFTT 186 (TC)
Parties
Appellant: Anthony Barkas; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
13 March 2013
Procedural Posture
VAT Appeal (diy Builders Scheme) / First Tier Tribunal (tax Chamber) Appeal Against HMRC Refusal of VAT Refund
Outcome
Appeal allowed
Legal Topics
VAT, DIY Builders Scheme, Residential Conversion, Planning Permission, Note 2(c) to Item 4, Group 5, Schedule 8 VATA 1994
Tax Law VAT DIY Builders Scheme Residential Conversion Planning Permission Note 2(c) to Item 4, Group 5, Schedule 8 VATA 1994

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Parties

Anthony Barkas

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Appeal (diy Builders Scheme) / First Tier Tribunal (tax Chamber) Appeal Against HMRC Refusal of VAT Refund

Legal Issues

  1. 1 Whether planning permission condition prohibited separate use or disposal of dwelling under Note 2(c) to Item 4, Group 5, Schedule 8 VATA 1994
  2. 2 Whether the dwelling was 'designed as a dwelling' for VAT refund purposes

Ratio Decidendi

Condition 6 did not prohibit the separate use or disposal of the dwelling; it only restricted the use of the commercial building. Practical effects or intentions do not amount to a legal prohibition. Therefore, Note 2(c) was satisfied and the VAT refund claim should be allowed.

Court Disposition

Appeal allowed

Orders

  • HMRC's refusal of the VAT refund is set aside
  • VAT refund claim under the DIY Builders Scheme is allowed