First-tier Tribunal failed to consider all the facts

Conservatory Roofing UK Ltd (CRL) specialised in enhancing and insulating existing roofs on conservatories. It claimed that the insulating properties of its products would allow customers to use their conservatory all-year round. It claimed the 5% VAT rate applied. HMRC disagreed saying the company installed new roofs liable to VAT at the standard rate.

The First-tier Tribunal dismissed the taxpayer’s appeal and the case progressed to the Upper Tribunal.

The Upper Tribunal concluded the First-tier Tribunal had erred in law in its decision. It had in effect recited HMRC’s submissions without considering the taxpayer’s arguments. Yet the taxpayer provide evidence that was pertinent - all the First-tier Tribunal needed to have done was explain succinctly why it rejected the taxpayer’s arguments and evidence on issues which were relevant. However it had not dealt with these points at all.

While this was a ‘superficially attractive short cut’ ...