Honeygarth Ltd v Revenue & Customs (VAT - ZERO-RATING : Building work) [2018] UKFTT 567 (TC) (01 October 2018)

Honeygarth Ltd v Revenue & Customs (VAT - ZERO-RATING : Building work) [2018] UKFTT 567 (TC) (01 October 2018)

Honeygarth Ltd did not have an interest in the land and did not make a supply of the land; therefore, it was not entitled to input tax credit. Even if it had made the supply, only foundations had been laid, which does not constitute a building in the course of construction for zero-rating. The invoices for input tax were addressed to Mr and Mrs Watson, not Honeygarth Ltd, further supporting the conclusion that Honeygarth Ltd was not entitled to reclaim the input tax.

Citation
[2018] UKFTT 567 (TC)
Parties
Appellant: Honeygarth Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
01 October 2018
Procedural Posture
VAT Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
VAT, Zero Rating, Input Tax Credit, Construction of Buildings, Land Ownership, Exempt Supply
Tax Law VAT Zero Rating Input Tax Credit Construction of Buildings Land Ownership Exempt Supply

Case Brief

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Parties

Honeygarth 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 Honeygarth Ltd had an interest in the land and made a supply of the land
  2. 2 Whether the supply could be zero-rated under VAT law
  3. 3 Whether Honeygarth Ltd was entitled to reclaim input tax

Ratio Decidendi

Honeygarth Ltd did not have an interest in the land and did not make a supply of the land; therefore, it was not entitled to input tax credit. Even if it had made the supply, only foundations had been laid, which does not constitute a building in the course of construction for zero-rating. The invoices for input tax were addressed to Mr and Mrs Watson, not Honeygarth Ltd, further supporting the conclusion that Honeygarth Ltd was not entitled to reclaim the input tax.

Court Disposition

Appeal dismissed

Orders

  • Amounts of input tax disallowed confirmed in full