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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 4720
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have a collection of classic cars and race cars. I rent a

Customer Question

i have a collection of classic cars and race cars. I rent a barn that has capacity for 15 cars from a farmer to store the cars in
I am thinking that I will install a lift into a corner of the barn in order that I can have a mechanic I know do some restoration work on my cars.
The farmer has said that his accountant will be pleased because I am storing and not running a business. I am a bit confused as to whether he is wanting to charge vat or not
Would be interested in your take on this
Submitted: 1 year ago.
Category: UK Tax
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your question..

VAT is chargeable on on self storage. Changes to this came about in Oct 2012

There is an article on new rules on self storage here

http://www.smallholder.co.uk/news/10044756.New_VAT_rules_on_self_storage_could_catch_farmers_and_smallholders__says_UK200Group_expert/that you may find helpful.

Having said this, if the self storage is ancillary to the main use of the building then it escapes the scope of new rules as highlighted in the article here

http://www.landmarksystems.co.uk/media/content/files/news/uk200-october-2012/uk200group-agribusinessupdateoctober2012-landmark.pdf

More information on provision of storage facilities can be found on VAT information sheet 10/13 here. You are referred to Sections 2.5 and 2.13 dealing with exceptions to new rules

https://www.gov.uk/government/publications/vat-information-sheet-1013-provision-of-storage-facilities/vat-information-sheet-1013-provision-of-storage-facilities

It would appear the farmer would wish to take advantage of the exceptions to the new rules applicable to storage i.e. the customer’s use of the space for storage is ancillary to the main use of the building.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

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