- Mr Spani appealed against HMRC’s decision to refuse his claim under the DIY Housebuilders’ Scheme.
- The claim was rejected because the property was intended for business purposes, as it had planning permission for a holiday let.
- To claim under the scheme, the property must be used “otherwise than in the course of furtherance of business.”
- Mr Spani argued that the property was his primary residence and any letting would be incidental to this.
- The property was listed on Air BnB to meet the planning consent requirements, but no lettings had taken place.
- The judge dismissed the appeal, stating that the property was built to be a holiday let and therefore constructed in furtherance of a business.
- The FTT concluded that the property was built in furtherance of a business, which prohibited a claim.
- This case highlights the importance of understanding the precise requirements of a claim under the scheme and seeking professional advice.
Source: deeksvat.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
