CMJ (Aberdeen) Ltd v Revenue & Customs (VAT - supply of construction services on the construction of a dwelling) [2021] UKFTT 190 (TC) (5 May 2021)

CMJ (Aberdeen) Ltd v Revenue & Customs (VAT - supply of construction services on the construction of a dwelling) [2021] UKFTT 190 (TC) (5 May 2021)

At the time the construction services were supplied, there was no statutory planning consent in place for the demolition and construction of a new dwelling. The only consent in force was for alteration and extension. Verbal consent and a building warrant do not constitute statutory planning consent under Scottish...

Source-derived case information.

Citation
[2021] UKFTT 190
Parties
Appellant: CMJ (Aberdeen) Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
05 May 2021
Procedural Posture
VAT Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
VAT Zero Rating, Construction of Dwellings, Statutory Planning Consent, Building Warrants, Retrospective Planning Permission
Tax Law Planning Law VAT Zero Rating Construction of Dwellings Statutory Planning Consent Building Warrants Retrospective Planning Permission

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Parties

CMJ (Aberdeen) Limited

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 construction services supplied by the appellant were eligible for zero rating under VAT law
  2. 2 Whether statutory planning consent for construction of a new dwelling was in place at the time of construction
  3. 3 Whether a building warrant or verbal consent can constitute statutory planning consent for VAT purposes

Ratio Decidendi

At the time the construction services were supplied, there was no statutory planning consent in place for the demolition and construction of a new dwelling. The only consent in force was for alteration and extension. Verbal consent and a building warrant do not constitute statutory planning consent under Scottish law. Retrospective planning consent was granted only after the works were completed. Therefore, the conditions for VAT zero rating were not met, and the supplies were standard rated.

Court Disposition

Appeal dismissed

Orders

  • The assessments by HMRC are upheld; the construction services are standard rated for VAT.