Conservatory Roofing Systems Ltd v Revenue & Customs (VALUE ADDED TAX - reduced rate supply - energy saving materials) [2020] UKFTT 506 (TC) (21 December 2020)

Conservatory Roofing Systems Ltd v Revenue & Customs (VALUE ADDED TAX - reduced rate supply - energy saving materials) [2020] UKFTT 506 (TC) (21 December 2020)

The supply made by the appellant was not confined to the installation of insulation for roofs but constituted the construction of a new or replacement roofing system. The predominant element, from the perspective of a typical consumer and as evidenced by marketing materials and the nature of the works, was a new roof rather than insulation. Therefore, the supply does not qualify for the reduced VAT rate under Note 1(a) of Group 2 to Schedule 7A VATA 1994 and is standard-rated.

Citation
[2020] UKFTT 506
Parties
Appellant: Conservatory Roofing Systems Limited; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
21 December 2020
Procedural Posture
VAT Appeal (first Tier Tribunal, Tax) / Final Judgment
Outcome
Appeal dismissed
Legal Topics
Value Added Tax, Reduced Rate Supply, Energy Saving Materials, Roof Insulation, VAT Classification
Tax Law Value Added Tax Reduced Rate Supply Energy Saving Materials Roof Insulation VAT Classification

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Parties

Conservatory Roofing Systems Limited

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal (first Tier Tribunal, Tax) / Final Judgment

Legal Issues

  1. 1 Whether the appellant’s supply constitutes 'insulation for roofs' within Note 1(a) of Group 2 to Schedule 7A VATA 1994 and qualifies for reduced rate VAT (5%) or is a standard-rated (20%) supply as a replacement roof.

Ratio Decidendi

The supply made by the appellant was not confined to the installation of insulation for roofs but constituted the construction of a new or replacement roofing system. The predominant element, from the perspective of a typical consumer and as evidenced by marketing materials and the nature of the works, was a new roof rather than insulation. Therefore, the supply does not qualify for the reduced VAT rate under Note 1(a) of Group 2 to Schedule 7A VATA 1994 and is standard-rated.

Court Disposition

Appeal dismissed

Orders

  • HMRC’s decision to reduce the appellant’s VAT Credit claim for the 01/18 period to nil is upheld.
  • HMRC’s assessment for £13,457.96 is upheld.