Residential home run commercially and relevant residential purpose
In Paul Salter v HMRC (TC03556 – 9 May 2014) the FTT held that a building hosting a residential home run on commercial lines was not a ‘non-residential building’.
Paul Salter and his wife had purchased a building which had been used as a residential home for children since 1950. The children suffered from mental disability or drug addiction. The residential home had been run commercially the owners being paid either privately or by the Local Authority.
Mr Salter carried out works to the building so as to convert it to an ordinary residential dwelling. He claimed a VAT refund.
HMRC denied the claim on the ground that the building had not ranked as a ‘non-residential’ building prior to the purchase by the taxpayer (VATA 1994 Sch 8 group 5 note 7A).
The FTT observed (referring to the relevant provisions)...
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Residential home run commercially and relevant residential purpose
In Paul Salter v HMRC (TC03556 – 9 May 2014) the FTT held that a building hosting a residential home run on commercial lines was not a ‘non-residential building’.
Paul Salter and his wife had purchased a building which had been used as a residential home for children since 1950. The children suffered from mental disability or drug addiction. The residential home had been run commercially the owners being paid either privately or by the Local Authority.
Mr Salter carried out works to the building so as to convert it to an ordinary residential dwelling. He claimed a VAT refund.
HMRC denied the claim on the ground that the building had not ranked as a ‘non-residential’ building prior to the purchase by the taxpayer (VATA 1994 Sch 8 group 5 note 7A).
The FTT observed (referring to the relevant provisions)...
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