Just ignore me

KEY POINTS

• The DIY builders’ scheme is in VATA 1994 s 35.
• Impact of the Court of Appeal’s decision for the taxpayer in CCE v Jacobs.
• The tribunal said it had to consider the conversion as a whole.
• Distinguishing s 30 and s 35.

When is the First-tier Tribunal not bound by a Court of Appeal decision? Apparently when it can distinguish the facts sufficiently to feel entitled to ignore it.

I have been pondering the First-tier Tribunal decision in DM and DD MacPherson (TC4756) insofar as it found it easy to dismiss the Court of Appeal decision in CCE v Jacobs [2005] STC 1518.

In the latter case Mr Jacobs bought a building which had been used as a residential school. It contained classrooms and other educational rooms on the ground floor bedrooms and bathrooms for...