New dwellings built or formed from more than one building
HMRC has issued RCB 13/2016 which details a change in policy concerning construction projects which involve the conversion of multiple buildings into a new dwelling.
The wording of the law is such that it only conceives of a single building being either built or converted for use as a dwelling. Strict interpretation of the wording thus prevented VAT relief (either at 0% or 5%) on some schemes where 2 buildings formed one single household dwelling.
Two cases, Catchpole (TC01995) & Fox (TC01957) highlighted this anomaly. Thankfully the Tribunal saw sense in both cases and found in favour of the appellant.
Single Market Notice gets update!
The timing might seem odd given the result of the referendum but it is true, VAT notice 725 which contains full details on the VAT treatment of intra EC supplies of goods has been updated.
Virtual Intermediation
The case of Dollar Financial UK Limited demonstrates that the exemption for financial intermediation is more widely drawn than was perhaps first thought. At one time HMRC were reluctant to accept that a supply consisted of intermediation where the services of the agent were minimal. The advent of technology now means that a person's eligibility to purchase a financial product can quickly be assessed by platforms sited within a webpage. Ostensibly the webpages act as a lead generating tool for sellers of financial products.
HMRC argued in this case that there had to be a legal relationship between lead generator and customer for the exemption to apply - the Tribunal disagreed.
If you have clients advertising financial products via the web this item may be of real interest.
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