In the recent case of MIM Construction it was held that a 'pool barn' was ancillary accommodation and could be treated as being part of an adjacent dwelling. Acceptance of this by the tribunal based on the facts of this case then opened the door for the alteration works to be zero rated under the now largely defunct listed building VAT rules. The alterations included the creation of a play room, yoga space, laundry, gym and changing rooms to an adjacent pool. The case mentioned the Fox and Catchpole VAT decisions which also concerned dwellings spread over more than one building. It has long been HMRC's view that for VAT purposes a dwelling must be contained in a single building (excluding garages which are specifically mentioned in the legislation). The case distinguished the House of Lords Zielinski Baker decision. It is understood that HMRC are rethinking their policy in this area.

Site plan of the ancillary accommodation