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)

The planning condition in question was an occupancy restriction, not a prohibition on separate use or disposal. It did not engage Note 2(c) of Group 5 Schedule 8 VATA 1994. The construction of the dwelling was not in furtherance of a business. Therefore, the appellant's claim under the DIY Builders Refund Scheme was eligible.

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

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Parties

Roy Shields

Appellant

Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the planning condition prohibited the separate use or disposal of the dwelling under Note 2(c) of Group 5 Schedule 8 VATA 1994, thereby disqualifying the VAT refund claim under the DIY Builders Scheme.
  2. 2 Whether the construction of the dwelling was in furtherance of a business under Section 35(1)(b) VATA 1994.

Ratio Decidendi

The planning condition in question was an occupancy restriction, not a prohibition on separate use or disposal. It did not engage Note 2(c) of Group 5 Schedule 8 VATA 1994. The construction of the dwelling was not in furtherance of a business. Therefore, the appellant's claim under the DIY Builders Refund Scheme was eligible.

Court Disposition

Appeal allowed

Orders

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