In Cavendish Green v HMRC [2016] UKFTT 620 (5 September 2016) the FTT found that the question whether a dwelling was ‘designed as a dwelling’ (VATA 1994 Sch 8 Group 5 note 2(d)) must be assessed at the date of the supply of the building.
The issue was whether the sale of a development site was zero-rated. This depended on whether the appellant could be said to be ‘constructing a building designed as a dwelling’ when at the time of sale the only part of the development which had been constructed was a garden wall. The FTT observed that the construction which was to be carried out was the erection of a substantial house surrounded by landscaped gardens and a handsome boundary wall. The building of the wall was therefore not preparatory; rather ‘it was the first stage on the continuum of construction...
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
