Upper Tribunal rejects Housebuilders’ white goods claims

The Upper Tribunal has ruled against Taylor Wimpey’s appeal in relation to its claim for input tax in respect of fitted carpets and white goods typically found in new houses.

Taylor Wimpey attempted to argue that the ‘builders block’, which precludes housebuilders from claiming VAT on certain items, was invalid.  However, the Upper Tribunal held that the block was correct and should be applied to most of the taxpayers claim as the majority of the goods were regarded as “incorporated” in the new houses and therefore were potentially covered by the block.

Unless Taylor Wimpey appeals the decision further, VAT claims for white goods and similar items incorporated in to new houses will be limited.

If you or your clients has recovered the VAT incurred in relation to white goods or fitted carpets in new houses, it would be wise to review the position. Please contact our free VAT helpline to discuss the VAT position further.

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