Goods, not services

The appellant bought a plot of land with a bungalow on it in 2004. He planned to build a new house in a phased build/demolition programme.

HMRC agreed the building works came within the meaning of ‘construction of a building designed as a dwelling’ in VATA 1994 s 35 the VAT DIY scheme.

When the appellant submitted his VAT claim HMRC repaid most of it but disallowed £774. The appellant said he carried out more than 90% of the work and only contracted others where the work was heavy or it was a legal requirement.

He used a third party to lay the foundations. HMRC said the service could never be zero rated under the DIY scheme because it was not in the course of construction of a building and neither was it a supply of goods.

Another...