Boxmoor Construction Ltd v Revenue & Customs [2014] UKFTT 833 (TC) (21 August 2014)

Boxmoor Construction Ltd v Revenue & Customs [2014] UKFTT 833 (TC) (21 August 2014)

The Tribunal found that retention of the facade was not an explicit or implicit condition of planning permission, and the planning consent was for alteration and extension, not demolition and new build. Therefore, the construction services did not qualify for VAT zero-rating under Schedule 8, Group 5, Item 2(a) VATA 1994.

Citation
[2014] UKFTT 833
Parties
Appellant: Boxmoor Construction Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
21 August 2014
Procedural Posture
VAT Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
VAT Zero Rating, Construction Services, Planning Permission, Demolition Vs Alteration
Tax Law VAT Zero Rating Construction Services Planning Permission Demolition Vs Alteration

Case Brief

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Parties

Boxmoor Construction Ltd

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether construction services supplied by Boxmoor Construction Ltd qualify for VAT zero-rating as construction of a new dwelling under Schedule 8, Group 5, Item 2(a) VATA 1994
  2. 2 Whether retention of facade was a condition of planning permission under Note 18 of Group 5

Ratio Decidendi

The Tribunal found that retention of the facade was not an explicit or implicit condition of planning permission, and the planning consent was for alteration and extension, not demolition and new build. Therefore, the construction services did not qualify for VAT zero-rating under Schedule 8, Group 5, Item 2(a) VATA 1994.

Court Disposition

Appeal dismissed

Orders

  • Construction services supplied by Boxmoor at 28 Cavendish Drive are not zero-rated for VAT purposes
  • HMRC's VAT assessments are upheld