Anthony Christopher Collins v Her Majesty's Revenue & Customs

Facts

The appellant, Anthony Christopher Collins, sought a refund of VAT under the "Do it yourself (DIY) builders scheme" in respect of works converting part of a former stable block near Hereford into his own home. The stable block, originally part of the Burgh Hill estate, consisted of two wings joined by a covered terrace and courtyard; the appellant's parents bought it in 1980 and lived in one wing, the other comprising a "music room" and a coach building. The "music room" had originally been a forge, converted by the previous owners in 1971 to a low standard — a brick shell with no insulation and open beams — which the appellant's parents used only for storage. In 1997, with his mother's health deteriorating, the appellant decided to sell his own property and convert the "music room" into his home. The local planning authority required a section 106 agreement under the Town and Country Planning Act 1990, signed on 20 August 1997, by which his parents covenanted that the annexe accommodation would not be sold or leased separately from the remainder of the property. Planning permission followed on 15 September 1997 and the works, producing a two storey semi-detached three bedroom house, were certified complete on 4 December 2000. The respondents disallowed the claim of £11,145.76 and the appellant appealed.