Meaning of “building”
Footnote 11 to GSTR 2011/D2, amongst other things, has caused some comment about the treatment of an offshore mobile drilling rig:
The Commissioner considers that accommodation provided to employees and contractors on an offshore mobile drilling unit in similar circumstances to that set out in Example 19 is also a supply of accommodation in commercial residential premises.
There is some question, it seems, that the platform could be described as anything similar to “residential premises described in paragraphs (a) to (e) of the definition of commercial residential premises”.
While not entirely on point, a recent decision of the UK First Tier Tribunal tax has examined the ordinary meaning of the word “building” in considering whether a “weir” is a “protected building” (see Calver Weir Restoration Project – http://www.bailii.org/uk/cases/UKFTT/TC/2011/TC01310.html).
The Tribunal referred to an earlier decision in Upper Don Walk Trust Tribunal Decision 19476 where it was argued that a bridge was a building for the purposes of Schedule 8 Group 5. The Tribunal held that:-
The dictionary definition is plainly too wide for our purposes. For example a ship is “built” but is clearly not a building. A multitude of things are structures, which is a very wide word but are not buildings…in our view the word “building” connotes an enclosure of sorts. It will enclose a volume of space or provide a place within which persons or things can be accommodated …. a building will usually have walls and, although not invariably, a roof…it is our view that in the ordinary meaning of the word, a bridge is not a building.
The drilling rig may be a building that at last in part “is occupied as a residence … regardless of term of occupation” and is similar to a hotel, motel etc. But it demonstrates how far the law has drifted from its policy intent of neutrality between home occupiers and tenants.
We knew that the Marana amendments had made the policy less transparent and effective.