In GS Bhachu v HMRC (TC02887 – 4 October) a couple purchased a house and engaged a builder (B) to renovate it. B accounted for VAT at the reduced rate of 5% on his supplies. HMRC issued an assessment charging VAT at the standard rate. B appealed contending that his supplies were within VATA 1994 Sch 7A Group 7. The First-tier Tribunal rejected this contention and dismissed his appeal finding that the conditions of Group 7 Note 3 were not satisfied as B had not shown that the house had been unoccupied for two years before the renovation.
Why it matters: VATA 1994 Sch 7A Group 7 Item 1 provides that certain supplies of services ‘in the course of the renovation or alteration of qualifying residential premises’ qualifies for the reduced rate of VAT. Group...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
In GS Bhachu v HMRC (TC02887 – 4 October) a couple purchased a house and engaged a builder (B) to renovate it. B accounted for VAT at the reduced rate of 5% on his supplies. HMRC issued an assessment charging VAT at the standard rate. B appealed contending that his supplies were within VATA 1994 Sch 7A Group 7. The First-tier Tribunal rejected this contention and dismissed his appeal finding that the conditions of Group 7 Note 3 were not satisfied as B had not shown that the house had been unoccupied for two years before the renovation.
Why it matters: VATA 1994 Sch 7A Group 7 Item 1 provides that certain supplies of services ‘in the course of the renovation or alteration of qualifying residential premises’ qualifies for the reduced rate of VAT. Group...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
