Wade v Revenue & Customs

VAT � DIY Builders� Refund Scheme � eligibility of barn conversion incorporating part of an existing dwelling � whether conversion satisfied provisions of S.35 VATA 1994 and Notes to Group 5 Schedule 8 of the Act � whether barn used as garage and whether additional dwelling created by the conversion � appeal allowed

HMRC say that the conversion of the barn does not satisfy the legislative criteria to be considered as a residential conversion in accordance with s 35 and Group 5 Schedule 8 of the Act because the conversion of the barn was not a conversion into a dwelling of either a non-residential building or a non-residential part of a building.

At the hearing the Appellant gave evidence and represented herself. The bundle of documents jointly provided by the parties included copy correspondence which provided a planning history of the conversion works, relevant legislation and case law authorities. Architects plans, photographs and numbered drawings were also provided by the Appellant which assisted in identifying the nature of the alteration works undertaken, including the sequential extension of the property and conversion of the barn.

The Appellant acquired Bold Hall Farm in 1999. The property consisted of a double fronted stone built house with a large brick built barn adjacent to its eastern gable. The two were connected by a small outbuilding described as a cowshed.

In 2001 the cowshed was demolished and following the grant of planning permission under reference 01/01620FUL, its site was utilised to create an extension to the house. The extension consisted of an office, utility room, shower room, fuel store and lobby leading to a door giving access to the adjoining barn. Although of only single-storey construction there was also an upper floor which provided storage space.