Local Authority Garage Rental - "change of status" and "VAT"

Learner2021

Hi, we (wife and I) got a letter in the post today from the local Council and was really hoping for some advice please!

For the last 5 years or so we have been renting a Local Borough Council (L.B.C.) "Lock-up" Garage near our house (50 metres, as the crow flies).

The L.B.C.have always referred to us as a Garage "Tenants" in respect of the Garage and we have paid a monthly charge for using the Garage.

We got a letter in the post today saying that as we were not  "Council House Tenants" the L.B.C. were going to "add VAT" to the monthly rental amount.

We don't understand why VAT would be "added" as we are just storing "stuff" in the garage, not merchandise!

Can anyone enlighten us as to why this is acceptable, or, maybe it isn't?

Surely if it was about "merchandise" it would apply whether you were a council tenant or not?

The letter gave us 28 days to object - but the date received was today, and this takes it beyond the said date, of 1st April.

Can anyone advise, as I was on hold earlier and after 59 minutes, got cut off!!!

We hope to hear your responses, as very confused!

P

bex2012

Do you also rent a council house from them as well? If not, then yes, VAT is applicable. Quick google brought this up. Ok it might not be your council but there is this guidance:
https://crawley.gov.uk/sites/default/files/documents/INT225009.pdf

And from HMRC, it says garages specifically designed for parking are standard rated:

https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services#building-and-construction-land-and-property

littleboo

As above, its noting to do with whatever you may or may not store in the garage