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Residential developments

12th Feb 2020
VAT Consultant vatadvice.org
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This decision is not always easy to follow, as there are a number of inter-dependent issues being addressed.

The case involves a residential development, including creation of HMOs and extension of existing dwellings.

  • The taxpayer had failed to meet the ‘planning permission’ test in Note 10 to Sch 7A, Group 6; some permissions were received after construction work was in progress.
  • The taxpayer had failed to allocate costs to specific properties.
  • The taxpayer had failed to accurately identify the scope of works at different rates of VAT.

The result of this poor planning and poor process was an assessment of around £59k.

Lesson learned!?

http://www.bailii.org/uk/cases/UKFTT/TC/2020/TC07524.html

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