Commentary

V4.113P Supplies in relation to land excluded from exemption—storage/self-storage facilities

Part V4 Exemption, zero-rating and reduced rates

V4.113P Supplies in relation to land excluded from exemption—storage/self-storage facilities

V4.113P Supplies in relation to land excluded from exemption—storage/self-storage facilities

In the 2012 Budget, it was announced1 that legislation was to be introduced with effect from 1 October 2012 to ensure that the provision of self-storage facilities is taxed in the same way as other storage facilities. Details of the legislation are set out below.

Exclusion from exemption

With effect from 1 October 2012, the grant of facilities for the self-storage of goods is no longer exempt (ie it is standard-rated)2.

If the grantor does not know how the facilities he is providing are to be used, he should obtain confirmation from his customer and retain such confirmation in writing. If the facilities are to be used for both self-storage and other purposes, the VAT liability will follow that of the principal element of the supply. If the facilities are unused, the supply will be standard-rated if there is an intention that they will be used for self storage in the future or if they have previously been used for self storage during the period of the agreement or contract3.

The expression 'facilities for the self-storage of goods' means the use of a relevant structure (ie the whole or part of a container or other

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