Shields v Revenue & Customs (VAT - BUILDERS Other) [2013] UKFTT 424 (TC) (07 August 2013)

Shields v Revenue & Customs (VAT - BUILDERS Other) [2013] UKFTT 424 (TC) (07 August 2013)

Condition 3 in the planning consent is an occupancy restriction, not a prohibition on separate use or disposal of the dwelling. It does not engage Note 2(c) of Group 5 Schedule 8 VATA 1994. The construction was not in furtherance of a business. The appeal is allowed and the claim is not disqualified on these grounds.

Citation
[2013] UKFTT 424 (TC)
Parties
Appellant: Roy Shields; Respondents: Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
07 August 2013
Procedural Posture
VAT Refund Appeal (diy Builders Scheme) / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed
Legal Topics
DIY Builders Refund Scheme, Planning Conditions and VAT Eligibility, Section 35 Value Added Tax Act 1994, Interpretation of Occupancy Restrictions Under VAT Law
Tax Law VAT DIY Builders Refund Scheme Planning Conditions and VAT Eligibility Section 35 Value Added Tax Act 1994 Interpretation of Occupancy Restrictions Under VAT Law

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Parties

Roy Shields

Appellant

Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Refund Appeal (diy Builders Scheme) / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether the planning condition (Condition 3) constituted a prohibition on separate use or disposal of the dwelling under Note 2(c) of Group 5 Schedule 8 VATA 1994, thus disqualifying the VAT refund claim.
  2. 2 Whether the construction of the dwelling was in furtherance of a business under Section 35(1)(b) VATA 1994.

Ratio Decidendi

Condition 3 in the planning consent is an occupancy restriction, not a prohibition on separate use or disposal of the dwelling. It does not engage Note 2(c) of Group 5 Schedule 8 VATA 1994. The construction was not in furtherance of a business. The appeal is allowed and the claim is not disqualified on these grounds.

Court Disposition

Appeal allowed

Orders

  • HMRC to review the actual VAT refund claim in terms of quantum.