Colchester v Revenue & Customs [2013] UKFTT 45 (TC) (04 January 2013)

Colchester v Revenue & Customs [2013] UKFTT 45 (TC) (04 January 2013)

Although the new building meets the criteria for a dwelling under Note (2), it is functionally and factually an annexe to the main house, designed to supplement its deficiencies and operate in conjunction with it. Note (16)(c) excludes such annexes from zero-rating, so the supply must be standard rated.

Citation
[2013] UKFTT 45
Parties
Appellant: Stephen Colchester; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
04 January 2013
Procedural Posture
VAT Appeal (first Tier Tribunal, Tax Chamber) / Final Decision on Appeal
Outcome
Appeal dismissed
Legal Topics
VAT Zero Rating, Building Works, Definition of Annexe, Schedule 8 VATA 1994
Tax Law VAT Zero Rating Building Works Definition of Annexe Schedule 8 VATA 1994

Case Brief

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Parties

Stephen Colchester

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Appeal (first Tier Tribunal, Tax Chamber) / Final Decision on Appeal

Legal Issues

  1. 1 Whether the construction of a replacement garage with living accommodation qualifies for VAT zero-rating as a 'building designed as a dwelling' under VATA 1994 Schedule 8, Group 5, Item 2
  2. 2 Whether the new building is an 'annexe' to the main dwelling and thus excluded from zero-rating by Note (16)(c)

Ratio Decidendi

Although the new building meets the criteria for a dwelling under Note (2), it is functionally and factually an annexe to the main house, designed to supplement its deficiencies and operate in conjunction with it. Note (16)(c) excludes such annexes from zero-rating, so the supply must be standard rated.

Court Disposition

Appeal dismissed

Orders

  • The supply of construction works is to be standard rated for VAT purposes.