BS Design & Management Ltd v Revenue & Customs [2014] UKFTT 496 (TC) (23 May 2014)

BS Design & Management Ltd v Revenue & Customs [2014] UKFTT 496 (TC) (23 May 2014)

The original building was demolished to ground level except for party wall and facades, and retention of the facades was a requirement of planning consent; therefore, the works qualify as construction of a new building and are zero rated under Schedule 8 Group 5 VAT Act 1994.

Citation
[2014] UKFTT 496 (TC)
Parties
Appellant: BS Design & Management Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
23 May 2014
Procedural Posture
VAT Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed
Legal Topics
Value Added Tax, Zero Rating, Building Works, Planning Consent, Demolition
Tax Law Value Added Tax Zero Rating Building Works Planning Consent Demolition

Case Brief

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Parties

BS Design & Management 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 works qualify for zero-rating under Schedule 8 Group 5 VAT Act 1994
  2. 2 Whether retention of facades was a requirement of planning consent
  3. 3 Whether any part of the rear elevation had been retained

Ratio Decidendi

The original building was demolished to ground level except for party wall and facades, and retention of the facades was a requirement of planning consent; therefore, the works qualify as construction of a new building and are zero rated under Schedule 8 Group 5 VAT Act 1994.

Court Disposition

Appeal allowed

Orders

  • Supplies made by BS Design & Management Ltd in respect of 149 Southampton Way are in relation to the construction of a building and qualify for zero rating for the residential element.
  • Parties to agree apportionment between zero rated and standard rated elements; liberty to apply to Tribunal if not agreed.