Jacobs v Customs & Excise [2003] UKVAT V18367 (05 November 2003)

DO-IT-YOURSELF BUILDER SCHEME – conversion by the Appellant of qualifying ship into a residence – not a building – zero-rating – no supply of the conversion service – appeal dismissed

LONDON TRIBUNAL CENTRE

	RACHEL ELAINE JACOBS	Appellant

	- and -

	THE COMMISSIONERS OF CUSTOMS AND EXCISE	Respondents

			Tribunal:	DR JOHN F AVERY JONES CBE (Chairman)

Sitting in public in London on 3 November 2003

The Appellant in person

David Bettoney, senior officer, HM Customs and Excise, for the Respondents

© CROWN COPYRIGHT 2003

DECISION

1.	This is an appeal by Mrs R E Jacobs against a decision not to repay VAT under the DIY builders’ scheme.  The Appellant appeared in person; the Commissioners were represented by Mr D Bettoney.
2.	The Appellant converted a ship, MV Farnworth, into a residence, doing the work herself.  I understand that she now accepts that the DIY scheme is inapplicable because the ship is not a building.  She also contended that the supply to her of building materials was zero-rated under item 1 of Group 8 of Schedule 8 to the VAT Act 1994.  The ship is agreed to be a qualifying ship.  I understand that she now accepts that it is only the supply of the conversion services (together with the goods) that are zero-rated. Since she did the work herself there is no supply by anyone in the course of a business of the conversion services.  The building materials were not supplied in the course of the conversion service either; they were merely supplies of building materials.  She said that her claim had fallen in between two bureaucratic stools and that it had a moral validity.  Mr Bettoney contended that she was not entitled to reclaim the tax paid for the reasons given above, and that I could not consider moral claims.
3.	I agree.  While I sympathise with the Appellant I would say that she had fallen in between two legal stools, with the result that I cannot do anything about it.
4.	Accordingly I dismiss the appeal.

J F AVERY JONES

CHAIRMAN

LON/03/305