Changes to the VAT treatment of self-storage facilities, and the associated guidance issued by HM Revenue & Customs, make it very important for landlords to know what use their tenants (or other parties) are actually putting their property.
Normally, VAT should only be charged on rent if the landlord has formally ‘opted’ to charge VAT. If no option to tax has been made, the landlord does not usually need to charge VAT.
The rules, which are a departure from this general rule, apply to leases and licences of storage facilities even if they were granted before 1 October 2012. The rules affect, for example, a warehouse or a unit on an industrial estate let for storage space and mean that VAT is chargeable even if no option to tax has been made…
If you are registered and logged in to the site, click on the link below to read the rest of the Mills & Reeve briefing. If not, please register or sign in with your details below.