TGH (Construction) Ltd v Revenue and Customs (VAT - ZERO-RATING : Building work) [2016] UKFTT 52 (TC) (01 February 2016)

TGH (Construction) Ltd v Revenue and Customs (VAT - ZERO-RATING : Building work) [2016] UKFTT 52 (TC) (01 February 2016)

The Workshop and Holme Terrace were constructed at the same time and on the same site and are used together as a unit to provide relevant residential accommodation. The Workshop is integral to the maintenance and operation of the residential buildings, and any non-residential use is de minimis. Therefore, by virtue of Note 5 to Group 5 Schedule 8 VATA 1994, the construction of the Workshop qualifies for zero-rating.

Citation
[2016] UKFTT 52 (TC)
Parties
Appellant: TGH (Construction) Ltd; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
01 February 2016
Procedural Posture
VAT ZERO RATING : Building Work / First Tier Tribunal (tax Chamber) Substantive Appeal
Outcome
Appeal allowed
Legal Topics
Value Added Tax, Zero Rating, Construction of Buildings, Relevant Residential Purpose, Ancillary Buildings, Interpretation of Note 5 Group 5 Schedule 8 VATA 1994
Tax Law Value Added Tax Zero Rating Construction of Buildings Relevant Residential Purpose Ancillary Buildings Interpretation of Note 5 Group 5 Schedule 8 VATA 1994

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Parties

TGH (Construction) Ltd

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT ZERO RATING : Building Work / First Tier Tribunal (tax Chamber) Substantive Appeal

Legal Issues

  1. 1 Whether the construction of a workshop, garage and store (the Workshop) at the same time as a relevant residential building (Holme Terrace) qualifies for zero-rating under Note 5 to Group 5 Schedule 8 VATA 1994.
  2. 2 Whether the Workshop and Holme Terrace are 'used together as a unit solely for a relevant residential purpose' within the meaning of Note 5.

Ratio Decidendi

The Workshop and Holme Terrace were constructed at the same time and on the same site and are used together as a unit to provide relevant residential accommodation. The Workshop is integral to the maintenance and operation of the residential buildings, and any non-residential use is de minimis. Therefore, by virtue of Note 5 to Group 5 Schedule 8 VATA 1994, the construction of the Workshop qualifies for zero-rating.

Court Disposition

Appeal allowed

Orders

  • Works associated with the construction of the Workshop are liable to VAT at the zero rate by virtue of Note 5 to Group 5 Schedule 8 VATA 1994.