- Brian Lawton appealed against HMRC’s refusal to pay a second VAT refund claim under the DIY Housebuilders’ Scheme
- The appeal involved the conversion of a barn into a dwelling and subsequent extensions
- The project was delayed and incurred increased costs due to the Covid-19 pandemic
- Lawton made a successful VAT refund claim in June 2021 for the initial conversion
- A second planning application for an extension was approved and completed in October 2022
- HMRC refused the second VAT claim made in October 2022
- The main issue was whether multiple VAT refund claims could be made when a project is split into distinct phases
- Lawton argued that two separate claims were justified due to the distinct nature of the projects
- HMRC contended that the second claim was for an extension to an existing dwelling and was ineligible
- The First-Tier Tribunal dismissed the appeal, agreeing with HMRC that only one claim could be made under the scheme
- The Tribunal emphasized that VAT completion must align with original planning permissions
- The case underscores the importance of timing and strict adherence to the scheme’s rules for self-builders seeking VAT refunds
- Relevant legislation cited was the VAT Act 1994, Section 35
- The case is part of broader discussions and changes regarding the DIY Housebuilders’ Scheme, including extended deadlines and reduced late payment interest rates following a reduction in the Bank of England base rate
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.
