Builders’ materials – input tax block

Les Howard
VAT Consultant
vatadvice.org
Columnist
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Taylor Wimpey plc are pursuing a legal case in relation to the ‘Builders’ Block,’ which prevents a developer from recovering input tax on certain goods installed, usually, into new dwellings.

The company claimed £51m for the period 1973 to 1997.

In November 2016, the Appeals reached the Upper Tier Tribunal, and a total of 6 points were addressed (para 26). The decision is effectively provisional, and it bounces the matter back to the parties to discuss further. Broadly, I think, the Upper Tier has come down against Taylor Wimpey, in that (a) the Builders’ Block is lawful, and (b) a reference on this issue to the ECJ is not required (paras 86, 141).

If you are involved in the construction sector, watch out for further developments on this one. The decision is here: https://www.gov.uk/tax-and-chancery-tribunal-decisions/taylor-wimpey-plc-v-the-commissioners-for-hm-revenue-and-customs-2017-ukut-0034-tcc

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