.png)
.png)
TGH Construction Ltd (TC4132)
The taxpayer company was a wholly-owned subsidiary of a charity but not itself a charity.
It contracted with the charity in 2011 to build a two-storey building comprising 18 self-contained flats for occupation by elderly licensees. The first person took up residence the following year.
The company claimed the building was an institution used for a “relevant residential purpose” under VATA 1994 sch 8 group 5 item 2(a) notes 4(b) or 4(g). That is it was a “home or other institution providing residential accommodation with personal care”.
HMRC disagreed saying the building was designed as a number of dwellings under note 2; it was not an institution and personal care was not provided to the residents. The construction was zero rated in either case but the Revenue’s argument had implications for the VAT treatment of the site as a whole.
The taxpayer appealed.
...Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
