Save content
Have you found this content useful? Use the button above to save it to your profile.
garden conservatory
istock_conservatory_monkeybusinessimages

VAT: Roofer's insulation appeal found to be leaky

by

The Upper Tribunal has agreed on a decision made by the first tier tribunal that the installation of insulated roofing panels on a conservatory did not qualify for the reduced rate of VAT.

19th Apr 2022
Save content
Have you found this content useful? Use the button above to save it to your profile.

Background

Greenspace Ltd supplied and fitted insulated roof panels to conservatories. They had treated these supplies as reduced rated under Group 2 of Schedule 7A VATA 1994, on the basis they were installing energy-saving materials. Note 1 to the group defines ‘energy-saving materials’ as including “insulation for… ceilings, roofs…”

HMRC believed the supplies to be standard rated and the first tier tribunal (FTT) agreed. This decision was made on the basis that there is a difference between ‘insulation for roofs’ and ‘the roof itself’. Greenspace argued their supplies were the former; HMRC and the FTT felt they were the latter.

An appeal was lodged with the upper tribunal (UT).

The UT first considered two cases in particular – Pinevale (2014 UKUT 204) and Wetheralds (2018 UKUT 173). 

Register for free to continue reading

It’s 100% free and provides unlimited access to the latest accounting news, advice and insight every day. As well as access to this exclusive article, you can:


Content lock down, tick icon

View all AccountingWEB content


Content lock down, tick icon

Comment on articles


Content lock down, tick icon

Watch our digital shows and more

Access content now

Already have an account?

Replies (3)

Please login or register to join the discussion.

avatar
By vstrad
20th Apr 2022 09:53

Another example of bizarre incentives in the tax system. Roof panels plus insulation - good; roof panels with insulation - bad.
Madness!

Thanks (4)
Replying to vstrad:
avatar
By Paul Crowley
20th Apr 2022 21:58

Maybe the intension was to encourage insulation
Not to subsidise every replacement roof on every buiding

Thanks (0)
avatar
By davidreger
21st Apr 2022 08:17

What is odd is that they didn't discuss the motivation behind the supply of the panels (often a test of VAT) - was it to increase insulation or to replace the roof. If the former then insulation if the latter roof. Simples!

Thanks (1)