Liability for VAT on pub conversions (Court of Appeal) | Practical Law

Liability for VAT on pub conversions (Court of Appeal) | Practical Law

Customs and Excise Commissioners v Lady Jane Blom-Cooper, 4 April 2003 (Court of Appeal).

Liability for VAT on pub conversions (Court of Appeal)

Practical Law UK Legal Update Case Report 2-107-0779 (Approx. 4 pages)

Liability for VAT on pub conversions (Court of Appeal)

Law stated as at 07 Apr 2003 • England, Wales
Customs and Excise Commissioners v Lady Jane Blom-Cooper, 4 April 2003 (Court of Appeal).
The Court of Appeal has ruled on the construction of section 35 of the Value Added Tax Act 1994 and the application of Note 9 of Group 5 in Schedule 8 to that Act. The ruling will be of concern to all DIY enthusiasts who have bought or intend to buy a pub to convert into a single residential property.
The effect of the ruling is that where a building already contains a residential part, the conversion of a non-residential part will not be treated as 'converting a non-residential part', unless the result of that conversion is to create an additional dwelling or dwellings.