Quitie Ltd v Revenue and Customs (VAT - EXEMPT SUPPLIES : Buildings)

VALUE ADDED TAX - Zero rating � construction of buildings - whether a supply and consideration � yes - whether zero rating could apply to supplies of construction services prior to the discharge of a condition of planning when �condition removed after commencement of but before completion of works � yes - timing of application of Note 2 of Group 5 Schedule 8 VATA - �whether over declared and overpaid VAT reclaimable � yes - Sections 1, 4, 5, 30, 35, 49 and 80 Value Added Tax Act 1994� (�VATA�) � Appeal allowed.

QL made an application for the appeals against the 2014 decision and the Section 80 claim to be combined which was not objected to by HMRC. The Tribunal granted the application.

HMRC made an application that the formerly agreed Statement of Facts should be amended principally in relation to the removal of the references to there being a loan from Charles Buchanan Ritchie (�CR�) to QL. The Tribunal granted the application.

�QL made an application that HMRC be barred from arguing there was an agreement between CR and QL. QL claimed this had not been part of HMRC�s case until the production of their Skeleton Argument; that HMRC have not set out when the agreement was, when it was made and when it was accepted and that the issue had arisen late in the day and caused prejudice to QL. The Tribunal noted the objections but considered that any evidence in relation to this would present itself during the hearing and, accordingly, the application was refused.

�Evidence was given by CR, aged 69, who was the sole shareholder of QL and a director of QL, along with his wife and daughter-in-law.� CR was a credible witness.