In HMRC v Summit Electrical Installations [2018] UKUT 176 (18 May 2018) the UT found that a planning consent restricting the occupation of student accommodation to students of named universities did not prevent the application of zero-rating under VATA 1994 Sch 8 Group 5.
Summit had made supplies as an electrical sub-contractor in connection with a block of student studio flats. The issue was whether the supplies were zero-rated as supplies in the course of construction of buildings designed as a number of dwellings.
Summit contended that its supplies were zero-rated as the block of flats was designed as ‘a number of dwellings’. HMRC considered however that ‘the separate use of the dwellings was prohibited by the terms of the planning consent’ so that the requirement of note 2(c) was not satisfied; the planning consent provided that the flats could only be occupied by students...
