Fishy business

Whether a property could be used separately for the purposes of the VAT DIY builders’ scheme

In 2003 the taxpayer and his wife bought ten acres of land in Nottinghamshire. The site which was outside the local boundary included a lake. The taxpayer dredged improved and stocked the lake and in 2004 opened it to anglers on a day permit basis.

In May 2008 the taxpayer applied for planning permission to build a dwelling on the site and received permission. Condition 4 of the planning consent stated: ‘The occupation of the dwelling shall be limited to a person solely or mainly employed or last employed in [the] fishery or a widow or widower of such a person or any resident dependants.’ The house was built and then occupied from the end of August 2010.

In September 2011 the taxpayer claimed a refund...