Commentary

V7.374 Standard rated supplies—use of land

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.374 Standard rated supplies—use of land

Part V7 Tax planning | Commentary

V7.374 Standard rated supplies—use of land

Examples of standard rated supplies

At V7.373, examples highlight when a supply involving land is exempt from VAT on the basis that the owner/user of the land is providing another party with a 'licence to occupy the land'.

In commercial situations, there are many examples of a business 'using' the land of another person or party for various reasons – but the arrangement falls short of the 'licence to occupy' arrangement that qualifies for exemption. In such cases, the charge to the user of the land will be standard rated.

The following examples illustrate when an arrangement is standard rated rather than exempt:

  1.  

    •     Sharing business premises – where more than one business has use of the same parts of the premises without having their own specified areas – the key feature here is that the business does not have its own land to enjoy, only on a shared basis.

  2.  

    •     Use of office facilities – providing another person with access to office premises to make use of the facilities – as in Example 1 above.

  3.  

    •     Facilities to park a vehicle – eg fee to use a car park.

  4.  

    •     Granting an ambulatory concession – for example, the right to sell ice creams from vans on the sea front, hamburger vans at sporting events, etc. The key point here is that it would be difficult for these vehicles to have their own specified area of land. In reality, they are paying for access to a

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