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Another DIY claim rejected

14th Mar 2020
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The DIY claimant’s original plan was to convert an outhouse to a dwelling. Planning permission was granted on this basis.

On inspection by an engineer, the structure was deemed unsound and recommended demolition. The project went ahead on this basis without fresh planning permission.

It was only after rejection by HMRC that the claimant sought clarification from the planning authority. The decision quotes the response he received: “… I am aware that you advised me on applying for the completion of development certificate that the alteration of the vehicle workshop could not be carried out, as the building was unable to be retained due to the structural suitability and required to be completely demolished prior to development.  Whilst a new application should have been sought it was considered that the built development was for all intents and purposes as per the previously approved drawings albeit now a new dwelling rather than an alteration.  It was therefore considered acceptable to issue the completion certificate ….  I trust this clarifies the council’s position.”

The FTT had some sympathy for the claimant. But he had failed to seek or obtain planning permission for the revised project. The FTT had no alternative but to dismiss the appeal.

COMMENT

One condition of the DIY scheme is that planning permission is obtained for the building being constructed. VAT Regulation 201(b)(iv) provides that the claimant shall provide “documentary evidence that planning permission for this building had been granted.” It is clear that the planning permission did not meet this test.

HMRC routinely check the wording of the planning permission against other documentation to ensure claims are valid.

The decision is here: http://www.bailii.org/uk/cases/UKFTT/TC/2020/TC07561.html

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