Conversion of barn into residential unit: effect of planning permission
In Lady Henrietta Pearson v HMRC (TC02735 – 17 June) a woman (P) obtained planning permission for the conversion of two adjacent derelict barns into ‘a live-work unit’ and claimed a refund of VAT under VATA 1994 s 35. HMRC rejected the claim on the basis that the work failed to meet the requirements of VATA 1994 Sch 8 Group 5 Note 2(c). The First-tier Tribunal allowed P’s appeal. Judge Bishopp expressed the view that ‘it is not the province of HMRC or this tribunal to police the planning rules’ and held that ‘there has been compliance with the spirit even if not the strict letter of the consent’.
Conversion of barn into residential unit: effect of planning permission
In Lady Henrietta Pearson v HMRC (TC02735 – 17 June) a woman (P) obtained planning permission for the conversion of two adjacent derelict barns into ‘a live-work unit’ and claimed a refund of VAT under VATA 1994 s 35. HMRC rejected the claim on the basis that the work failed to meet the requirements of VATA 1994 Sch 8 Group 5 Note 2(c). The First-tier Tribunal allowed P’s appeal. Judge Bishopp expressed the view that ‘it is not the province of HMRC or this tribunal to police the planning rules’ and held that ‘there has been compliance with the spirit even if not the strict letter of the consent’.
