Below is the HM revenue letter
LONDON DEVELOPERS LTD
15 CONNAUGHT ROAD
TW1 l OPX
HM Revenue & Gustoms
VAT Registration Service
\ ru1 4JX
Tel 03000 523240
Lines open Mon to Fri 08.00 to 17.00
Fax 03000 54630 7 t 03000 ilsdtz
.Date: 22 July 2015
Our Ref: 222|4LCDRJT4I1IVRKR
www. g ov. u k/b u s i n ess -tax/vat
Dear Sir or Madam
Thank you for your recent application to register for VAT.
We are unable to proceed with your VAT registration application because
The relevant law for zero rating the first grant of a major interest in a converted property can be
found in the VAT Act 1994 Schedule I Group 5:-
"The first grant by a person:
(a) ... .
(b) converting a non-residential or a non-residential part of a building into a building designed as a
dwelling or a number of dwellings .. . ..
of a major interest, or in any part of the site.
The development does not meet the conditions of the above legislation i.e. it does not meet the
basic conditions for the first grant to be zero-rated as the building is not the subject of a nonresidential
conversion (VAT Notice 708 Buildings and Construction sections 5.3 and 5.3.1 refer).
From the information provided by yourselves and information on the Wandsworth Council
Planning site it appears that neither of the dwellings will be wholly contained within the former
non-residential part of the property (i.e. they both utilise former living accommodation). To qualify
for zero-rating the conversion must use only non-residential parts of the building (Section 5.3.5 of
Notice 708 refers).
For information and access to online seminars that are relevant to VAT please use this link:
You are therefore ineligible for VAT registration as you are not making or intending to make a
taxable supply as the sale of the property will be exempt from VAT.
VAT Notice 708 Buildings and Construction can be accessed via HMRC's website
www. g ov. u k/busi ness -taxl v atl .
Please advise us promptly if your circumstances change and you start to make taxable supplies
or the value of your taxable supplies exceeds the registration threshold.
lf you do not tell us at the right time, you may have to account for tax you have not collected and
also incur a financial penalty. You should be aware that you are required to account for and pay
any VAT due from the date you are liable to be registered, not just from the date you apply for
registration or from when you receive your certificate.
lf you have any further information that you would like us to consider, please send it within 30
days of the date of this letter.
lf you do not agree with my decision, you can:
ask for my decision to be reviewed by an HMRC officer not previously involved in the matter, or
appeal to an independent tribunal.
Should you require an lndependent Review of this decision, you will need to make a written
request as per the instructions below. Any such request must clearly state that you wish the
decision to be reviewed by an HMRC Officer not previously inVolved in the matter.
lf you opt for a review you can still appeal to the tribunal after the review has finished.
!f you want a review, write to the team noted at the end of this letter. Send your request to HMRC,
VAT Registration Unit, Crown House, Birch Street, Wolverhampton, WV1 4JX within 30 days of
the date of this letter, giving the reasons why you do not agree with the decision.
We will not take any action to collect the disputed tax while the review of the decision is being
lf you want to appeal to a tribunal you should send them your appeal within 30 days of the date of
Further information about appeals and reviews can be found on the HMRC website
http://wwrl.hmrc.gov.uk/dealing with/appeals.htm or you can contact us by telephone using the
number on this letter.
You can find out more about tribunals by contacting the Tribunals Service on 0845 223 8080.
Further information is available on the Tribunals Service website www.tribunals.gov.uk/tax/ .
o t-\ \
Registration Team BS8
HM Revenue & Customs
I shall also copy in the planning permission and plans. in my next response
Unfortunately I am unable to paste in the other documents I have. Would it be possible to have an email so that I can forward the documents.
Please give me a couple to days to find additional information with regards ***** ***** use.