Herling Ltd v Revenue & Customs [2009] UKFTT 257 (TC) (08 October 2009)

The planning consent restricts use of the dwellings to holiday accommodation only and expressly excludes use as a principal private residence. This restriction is legally enforceable and falls within Note (13) to Group 5 of Schedule 8 to the VAT Act 1994, thereby excluding zero-rating for the first grant of the dwellings.

Citation: [2009] UKFTT 257 (TC)
Parties: Appellant: Herling Ltd; Respondents: The Commissioners for Her Majesty’s Revenue and Customs (VAT)
Jurisdiction: United Kingdom
Judgment Date: 08 October 2009
Procedural Posture: VAT Appeal / First Tier Tribunal Decision
Outcome: Appeal dismissed
Legal Topics: VAT, Zero Rating, Planning Consent, Holiday Accommodation, Principal Private Residence

Tax Law VAT Zero Rating Planning Consent Holiday Accommodation Principal Private Residence

Case Brief

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Parties

Herling Ltd

Appellant

The Commissioners for Her Majesty’s Revenue and Customs (VAT)

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal Decision

Legal Issues

1 Whether the first grant of 28 dwellings constructed by the appellant qualifies for zero-rating under Schedule 8, Group 5, item 1 of the VAT Act 1994
2 Whether the planning condition restricting use to 'holiday accommodation only' prevents use as a principal private residence under Note (13) to Group 5

Ratio Decidendi

Court Disposition

Appeal dismissed

Orders

The assessments for VAT at the standard rate stand; no adjustment is needed to the assessments.