J Campbell v HMRC

In J Campbell v HMRC [2017] UKFTT 104 (24 January 2017) the FTT found that a condition of occupation (which had been removed by the time of the hearing) precluded the relevant building from qualifying as a dwelling for the purpose of VATA 1994 s 35.

Mr Campbell had obtained planning permission to build a house adjacent to a building occupied by a livery business and subject to the condition that: ‘The occupation of the dwelling shall be limited to a person solely employed by the livery business.’ HMRC had therefore refused a refund of VAT as it considered that the condition prohibited the separate use of the house.

The FTT thought that the planning condition was identical to the condition in Burton [2016] UKUT 20 so that the house was not ‘designed as a dwelling’ for the purpose of s 35. During the time when the...