Disputed VAT

Rate applicable to building work

In 2010 the defendants bought a building which had been granted planning permission. They appointed C the claimant to carry out building work on it but paid only part of the sum charged by C.

One of the issues concerned VAT. In the High Court the judge held that in the absence of any certificate or other written confirmation that statutory building control approval had been given the VAT was chargeable at the full rate of 17.5% not 5% for work done in the alteration or renovation of buildings (VATA 1994 Sch 7A gp 7). The defendants appealed. They said building control approval had never been necessary and the judge had not addressed that issue.

Lord Justice Longmore in the Court of Appeal said the High Court judge had dealt with and rejected the defendants’ submissions ...