C Swales v HMRC

In C Swales v HMRC [2019] UKFTT 277 (25 April 2019) the FTT found that Mr C Swales was entitled to a refund under VATA 1994 s 35.

Mr T Swales the son of the appellant and owner of the property had applied for planning permission for ‘demolition of garden shed and erection of detached annexe’ as he wished to create separate accommodation for his parents in the property’s grounds. Permission was refused on the ground that the proposed building would not be compatible with the existing house. A further application for ‘erection of extension to outbuilding and conversion to residential annexe’ was submitted and was approved.

Mr C Swales was appointing a contractor to undertake the work and intended to purchase certain materials himself but his claim for a refund under the DIY builders scheme was rejected. HMRC’s letter mentioned that a new build...