In Conservatory Roofing UK Ltd v HMRC [2022] UKUT 00182, the Upper Tribunal (UT) found the First Tier Tribunal (FTT) had not considered all the relevant information in dismissing an appeal finding that roofing works should be standard rated for VAT purposes. The UT remitted the decision to the FTT to be remade.

  • Conservatory Roofing UK Ltd (CRL) carries out building works refitting conservatory roofs.
  • CRL contended that the work that it undertakes consists of installing ‘insulation for roofs’ which attracts VAT at a reduced rate.
  • HMRC disagreed contending CRL installed ‘composite insulated roofing systems’ which attract VAT at the standard rate.
  • CRL‘s appeal to the First Tier Tribunal (FTT) was dismissed.
  • CRL appealed to the UT.

The UT found that:

  • The FTT decision was flawed, it did not set out findings of fact regarding the supply made.
  • The FTT recited HMRC’s submissions without dealing with the counterpoints raised by the appellant.
  • The UT considered Information raised by the appellants was relevant but had not been considered.
  • There was an inadequacy of reasoning for the decision.
  • As the FTT decision lacked a clear set of facts founds, the UT could not remake the decision.

The appeal was allowed and readmitted to the FTT to re-consider.

Useful guides on this topic

Energy-Saving Materials
The supply and fitting of energy-saving materials in residential accommodation attracts a reduced rate of VAT. What does it apply to? What are the qualifying conditions? What case law is there on this topic?

Input VAT claims: Pre-registration
When can pre-registration input VAT be recovered? What are the time limits and restrictions? 

CIS: Construction Industry reverse charge
What is the CIS VAT reverse charge? How do you account for VAT? Can you still cash account for VAT? What administrative changes do I need in order to operate the reverse charge? 

Insulated roofing system not insulation for VAT
In Conservatory Roofing Systems Limited (CRSL) v HMRC [2020] TC07976, First Tier Tribunal (FTT) found that supplies of composite insulated roofing systems are not the ‘installation of insulation’ and are not subject to VAT at the reduced rate.

External links

Conservatory Roofing UK Ltd v HMRC [2022] UKUT 00182


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