CRC v A Barkas, Upper Tribunal (Tax and Chancery Chamber)
The taxpayer owned two barns. He obtained planning permission to convert one into a residence and the other into an office. He reclaimed the VAT incurred on the building work under the DIY builders’ scheme VATA 1994 s 35.
HMRC refused on the basis s 8 group 5 note (2)(c) was not satisfied because one of the conditions of the planning permission was that the barn converted into an office could be used only by the occupiers of the other barn now a dwelling.
The First-tier Tribunal allowed the taxpayer’s appeal noting the permission did not preclude the separate use or disposal of the dwelling.
The Revenue appealed.
The Upper Tribunal applied the approach in Shields v CRC [2014] UKUT 453 saying the phrase “live/work unit” used in planning permission may affect the use of the dwelling depending on the circumstances.
The...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
