Housing Developers – VAT “block” on white goods

In the case of Taylor Wimpey the Upper Tribunal (“UT”) has released a further decision in respect of the “builders’ block”, which restricts property developers from recovering input tax on white goods and fitted carpets and other items that are incorporated into a new dwelling but do not qualify as “building materials”.  The UT has disallowed almost all of the taxpayers  claim. The UT confirmed that all the relevant goods which were part of the claim were “incorporated” in a building, and therefore potentially subject to the block. It was sufficient that even though there was a designated space for an appliance to be installed.


The UT confirmed that the only way for any part of the taxpayers claim to succeed was to show  that the white goods were “ordinarily installed” in houses and therefore not subject to the “builders block”.  In this regard the UT found that only cooker hoods, out of ten categories of items claimed for, were “ordinarily installed” at any relevant time, and even then only for the period from 1982-4.


If you are your client is a property developer, please contact our free helpline to discuss the correct VAT rate for any planned works and the ability of the developer to recover VAT on related expenditure.  

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