Housebuilder is suing Aylesbury Railway Club trustees over tax payable on works

Property developers Bellwinch Homes have launched a legal battle for compensation in a dispute over VAT payable on construction works.

The homebuilder is suing the trustees of Aylesbury Railway Club for repayment of VAT totalling £149,706.23, and interest.

The dispute centres around a development agreement made in November 2003 for construction work worth £855,000 on land adjoining Penn Road in Aylesbury, according to a High Court writ.

The agreement was made between the railway trustees, and Transcend Property, and Bellwinch has taken over Transcend’s side of the agreement.

The supply of works was a VAT input to the trustees, and VAT was payable totalling £149,706.23, the writ says. Bellwinch’s solicitors sent a bill to the trustees on September 20 2007, seeking payment of the VAT, which the trustees can claw back from HM Revenue and Customs, but they have failed to pay the VAT, it is alleged.

Now Bellwinch, of Oaks Court, Warwick Road, Borehamwood, is suing the trustees for payment of the money plus interest of £8,017.05 and continuing at £32.72 a day.