VAT – Alterations – Listed building – Value Added Tax Act 1994 – Replacement of windows of listed building with new triple-glazed units – Old windows in good repair and replaced solely for purpose of achieving better insulation – New windows outwardly identical to old ones – Whether work zero-rated for VAT purposes as supply of building materials in course of approved alteration of listed building within item 3 in Group 6 of Schedule 8 to 1994 Act – First respondent ruling that works consisting of repair and maintenance not alteration – Appeal allowed The appellant engaged the second respondent company to replace the windows in his house, a listed building, with new triple-glazed windows. All the necessary consents for the works were obtained from the local planning authority. The existing windows had been in place for 15 years and were not in need of repair; the purpose of their replacement was to achieve better insulation of the house. In March 2011, the appellant requested a ruling from the first respondents that the work was zero-rated for VAT purposes, as being a supply of building materials to a person to whom the supplier was supplying services in the course of an approved alteration of a listed building, within item 3 in Group 6 of Schedule 8 to the Value Added Tax Act 1994. He sought the ruling in order to persuade the second respondent not to charge VAT on the cost of the new window installation. However, the first respondents ruled, partly by reference to HMRC’s published guidance, that the works were repair and maintenance and therefore were not zero-rated by item 3. The appellant appealed. In response to the appeal, the first respondents produced a statement of case in which they pointed out that there was no alteration to the layout or appearance of the building and that outwardly the new windows would be identical to the old; they contended that the work of replacing the old windows with outwardly identical but more energy-efficient windows was done for the purposes of the maintenance of the building as a whole. However, they subsequently reconsidered their ruling in the light of corrections to the HMRC guidance and indicated that they would not defend the appeal. The second respondent agreed to be added as a party to the appeal but made no representations. Held: The appeal was allowed. The fitting of new windows to the appellant’s house was an alteration to that house. The replacement of windows that were only 15 years old and in good repair was not repair or maintenance but an alteration of the building. The supply made by the second respondent therefore fell within item 3 in Group 6 of Schedule 8 to the 1994 Act and was zero-rated. The first respondent had correctly withdrawn its defence to the appeal. The appellant appeared in person; Mr Robinson, of HMRC, appeared for the first respondent; the second respondent did not appear and was not represented. Sally Dobson, barrister
Wallis v Commissioners for HM Revenue and Customs and another
VAT – Alterations – Listed building – Value Added Tax Act 1994 – Replacement of windows of listed building with new triple-glazed units – Old windows in good repair and replaced solely for purpose of achieving better insulation – New windows outwardly identical to old ones – Whether work zero-rated for VAT purposes as supply of building materials in course of approved alteration of listed building within item 3 in Group 6 of Schedule 8 to 1994 Act – First respondent ruling that works consisting of repair and maintenance not alteration – Appeal allowed
The appellant engaged the second respondent company to replace the windows in his house, a listed building, with new triple-glazed windows. All the necessary consents for the works were obtained from the local planning authority. The existing windows had been in place for 15 years and were not in need of repair; the purpose of their replacement was to achieve better insulation of the house.
In March 2011, the appellant requested a ruling from the first respondents that the work was zero-rated for VAT purposes, as being a supply of building materials to a person to whom the supplier was supplying services in the course of an approved alteration of a listed building, within item 3 in Group 6 of Schedule 8 to the Value Added Tax Act 1994. He sought the ruling in order to persuade the second respondent not to charge VAT on the cost of the new window installation. However, the first respondents ruled, partly by reference to HMRC’s published guidance, that the works were repair and maintenance and therefore were not zero-rated by item 3. The appellant appealed.
In response to the appeal, the first respondents produced a statement of case in which they pointed out that there was no alteration to the layout or appearance of the building and that outwardly the new windows would be identical to the old; they contended that the work of replacing the old windows with outwardly identical but more energy-efficient windows was done for the purposes of the maintenance of the building as a whole. However, they subsequently reconsidered their ruling in the light of corrections to the HMRC guidance and indicated that they would not defend the appeal. The second respondent agreed to be added as a party to the appeal but made no representations.
Held: The appeal was allowed.
The fitting of new windows to the appellant’s house was an alteration to that house. The replacement of windows that were only 15 years old and in good repair was not repair or maintenance but an alteration of the building. The supply made by the second respondent therefore fell within item 3 in Group 6 of Schedule 8 to the 1994 Act and was zero-rated. The first respondent had correctly withdrawn its defence to the appeal.
The appellant appeared in person; Mr Robinson, of HMRC, appeared for the first respondent; the second respondent did not appear and was not represented.
Sally Dobson, barrister
