Case report: defining a dwelling in Richard Burton

The Upper Tribunal decision in the case of Richard Burton (UKUT0020) will cause consternation unless it is overturned on appeal. The most relevant point was in determining whether a form of occupancy restriction for a new house was sufficient to be regarded as ‘prohibiting’ separate use or disposal of the house from an associated business.

In order for a new house to be zero rated (or for VAT to be reclaimed under the DIY housebuilders scheme) the dwelling in question has to be capable of being used, and disposed of, separately from any other entity, including the associated business.