Greenspace Limited v The Commissioners for HM Revenue and Customs [2021] UKUT 0290 (TCC)
| Jurisdiction | UK Non-devolved |
| Judge | Mr Justice Leech,Judge Jonathan Richards |
| Neutral Citation | [2021] UKUT 0290 (TCC) |
| Subject Matter | 22 November 2021 |
| Court | Upper Tribunal (Tax and Chancery Chamber) |
| Published date | 24 November 2021 |
[2021] UKUT 0290 (TCC)
Appeal number: UT/2020/000336 (V)
VALUE ADDED TAX – Whether supplies of insulated panels for conservatory roofs
fall within Note 1(a) to Schedule 7A of the Value Added Tax Act 1994 – no – appeal
dismissed
UPPER TRIBUNAL
(TAX AND CHANCERY CHAMBER)
GREENSPACE LIMITED
Appellant
-and-
THE COMMISSIONERS FOR HER MAJESTY’S
REVENUE AND CUSTOMS
Respondents
Sitting in public by way of remote video hearing treated as taking place at The Royal
Courts of Justice, Rolls Building, London on 3 November 2021
Hui Ling McCarthy QC and Edward Hellier, instructed by Mazars, for the Appellant
Joanna Vicary, instructed by the General Counsel and Solicitor for Her Majesty’s
Revenue and Customs, for the Respondents
© CROWN COPYRIGHT 2021
TRIBUNAL:
MR JUSTICE LEECH
JUDGE JONATHAN RICHARDS
2
DECISION
Conservatories can be too hot in summer and too cold in winter. The appellant
company (“Greenspace”) seeks to address this problem by supplying and fitting
insulated roof panels to its customers’ conservatories. The question raised in this appeal
is whether the supply of these panels is subject to a reduced rate of VAT on the basis
that it is a supply of insulation for roofs, or whether it is subject to the standard rate of
VAT on the basis that it is a supply of a conservatory roof itself. In a decision released
on 27 August 2020 (the “Decision”) and reported with reference [2020] UKFTT 349
(TC), the First-tier Tribunal (Tax Chamber) (the “FTT”) held that Greenspace’s
supplies were of roofs and so were standard-rated. With the permission of the Upper
Tribunal, Greenspace appeals against that decision.
Legislation and authorities
Greenspace argues that the FTT failed to apply the legislation correctly, having
regard to the relevant authorities. We therefore start with the legislation and those
authorities.
Statute
By s29A of the Value Added Tax Act 1994 (“VATA 1994”), a reduced 5% rate of
VAT is charged on any supplies of a description specified in Schedule 7A. Group 2 of
Schedule 7A specifies:
1. Supplies of services of installing energy-saving materials in
residential accommodation.
2. Supplies of energy-saving materials by a person who installs those
materials in residential accommodation.
Note 1 to Group 2 provides a definition of “energy-saving materials” which, so far
as material to these proceedings, is as follows:
1. For the purposes of this group “energy-saving materials” means any
of the following:
(a) insulation for walls, floors, ceilings, roofs or lofts or for
water tanks, pipes or other plumbing fittings.
Both parties agree that a distinction is to be drawn between a supply of “insulation
… for roofs” (which is subject to the reduced 5% rate of VAT) and a supply of a “roof”
itself, which is standard-rated for VAT purposes. That distinction was articulated in the
decision of the Upper Tribunal (David Richards J as he then was) in HMRC v Pinevale
[2014] UKUT 204 (TCC).
Pinevale
The Upper Tribunal’s decision in Pinevale was brief and needs to be understood in
the light of some of the FTT’s findings of fact, which were not challenged or over-
turned on appeal (even though the appeal was successful). Pinevale supplied and fitted
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