Abbeytrust Homes Limited v Commissioners for Her Majesty's Revenue and Customs

Decision date: 2 March 2011

Neutral citation: [2011] UKFTT 150 (TC)

Overall AI summary confidence: high

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Short overview

This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.

AI confidence in this short overview: high

Abbeytrust Homes appealed HMRC’s assessment that VAT of £34,255.32 was payable because building services were standard-rated, not zero-rated. The Tribunal held that payments received before invoicing brought the time of supply forward under s.6(4) VATA, and that at the time of those payments there was no statutory planning consent satisfying Note 2(d) to Group 5 Schedule 8 VATA; retrospective planning permission did not make earlier supplies zero-rated. The appeal was dismissed and HMRC’s assessment confirmed.

Ratio decidendi

This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.

AI confidence in this ratio decidendi summary: high

The tax point for construction services is the time of receipt of payment under s.6(4) VATA where payment precedes invoice or completion; and for Note 2(d) to Group 5 Schedule 8 VATA to apply the required planning consent must exist and works must be carried out in accordance with it at the relevant time — retrospective planning permission granted after the payments cannot retrospectively confer zero-rating.

Obiter dicta

This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.

AI confidence in this obiter dicta summary: medium

The decision records that VAT Notice 700 and Regulation 93 are general guidance and do not override the statutory effect of s.6(4) VATA on tax points, and that the characterisation of receipts as loans or as consideration depends on the evidence and conduct of the parties rather than the mere absence of written contracts or invoices.

Warning

- Chunk contains extensive repetition of the same material. notes contain extensive repetition but are not shown to be materially incomplete.

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