M Francis v HMRC

In M Francis v HMRC (TC02045 – 19 June) an individual (F) obtained planning permission from Barnet Council for the construction of a single-storey extension to an existing building. While the work was in progress he discovered that the walls of the existing building were not strong enough to support the proposed extension so he demolished the existing building and rebuilt it in accordance with the plans. He subsequently obtained retrospective planning permission from Barnet Council. He claimed a refund of VAT under VATA 1994 s 35. HMRC rejected the claim on the basis that the effect of the tribunal decision in MJ Watson v HMRC [2010] UKFTT 526 (TC) TC00780 was that for the purpose of VATA 1994 s 35 planning permission could not be retrospective. The First-tier Tribunal allowed F’s appeal. Judge Kempster specifically distinguished Watson v HMRC because in that...