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 held that the planning consent did not explicitly or implicitly require retention of the facade, and thus the statutory conditions for zero-rating under Note 18 were not met. The works, although amounting in substance to a new build, did not qualify for zero-rating because the retention of the facade was not a condition of planning permission.

Citation
[2014] UKFTT 833 (TC)
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 (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Zero Rating, Construction of New Dwellings, Planning Permission Conditions, Demolition and Reconstruction
Tax Law VAT Zero Rating Construction of New Dwellings Planning Permission Conditions Demolition and Reconstruction

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 (tax Chamber) Decision

Legal Issues

  1. 1 Whether the construction services supplied by Boxmoor Construction Ltd qualified for zero-rating under Schedule 8, Group 5, Item 2(a) of the Value Added Tax Act 1994 as construction of a new dwelling
  2. 2 Whether the retention of a facade was a condition of planning permission as required by Note 18 to Group 5

Ratio Decidendi

The Tribunal held that the planning consent did not explicitly or implicitly require retention of the facade, and thus the statutory conditions for zero-rating under Note 18 were not met. The works, although amounting in substance to a new build, did not qualify for zero-rating because the retention of the facade was not a condition of planning permission.

Court Disposition

Appeal dismissed

Orders

  • Construction services supplied by Boxmoor at 28 Cavendish Drive are not zero-rated for VAT purposes and are subject to standard rate VAT.