Taylor Wimpey v HMRC

In Taylor Wimpey v HMRC (TC03700 – 12 June 2014) the FTT dismissed the builders’ claim for recovery of input tax on ‘white goods’.

Taylor Wimpey claimed input tax on certain items installed in newly built homes by companies now in its VAT group in the period between 1 April 1973 and 30 April 1997 (being the last period to which the three year cap did not apply). The items were both low specification allowances such as ovens and hobs and high specification appliances such as microwave ovens and dishwashers.

Taylor Wimpey contended that VAT was recoverable as it was attributable to zero rated supplies (VATA 1994 Sch 8 group 5) as part of a composite supply (CPP (C-349/96) and that the ‘builders’ block’ (introduced by Input Tax (Exceptions) No. 1 Order SI 1972/1165 art 3) did not apply.

Taylor Wimpey thought that the...