News

Extension or New Build - a surprising and welcome judgment!

February 2015

Astral Construction Ltd

The Upper Tier rejected HMRC's appeal in a case concerning the zero-rating of a newly constructed nursing home on the site of a former church.

HMRC's objections, perhaps understandably, were founded on the basis that the  development incorporated the original church as a feature of the scheme.  As such, HMRC's view was that the development comprised the extension or conversion of an existing building rather than the construction of a new building.

The Upper Tier, upheld that FTT judgment, considering "the nursing home, had been so different from the existing building that it could not be said to constitute an enlargement of or extension to the church".

Sometimes it takes a legal mind to remind us VAT practitioners what those drafting the law were intending to achieve!  A common sense decision.

Please contact us for further information

Next Item >
back to top