Home improvement

The taxpayer John Clark had appealed against HMRC’s refusal to refund £9 230.74 under the DIY house-builders’ scheme in VATA 1994 s 35.

The dispute arose relating to certain works carried out by Mr Clark during the conversion of an existing garage/stable block into a dwelling primarily for the residential use for his wife and himself.

At a previous hearing ([2010] UKFTT 258) the tribunal had held that although a refund was not due under VATA 1994 s 35(1A)(a) it would be due under the residential conversion provisions in s 35(1C).

However there was disagreement as to how much of the refund claim should be disallowed as relating to the conversion of the garage.

Mr Clark argued that he was entitled to 81% of...