Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

New queries, issue 4326

18 October 2011
Issue: 4326 / Categories: Forum & Feedback
VAT or no VAT?; Edwardian house; A little work; IVA for five

VAT or no VAT?

My client owns a block of flats comprising 20 units ten of which have an allocated car parking space. The flats are rented as a whole block for a single payment of £19 000 per month to a serviced apartment company which then rents them out individually to business people and tourists on a short-term basis (often nightly) i.e. similar to a hotel.

The serviced apartment company pays my client a further £1 000 per month for the car parking spaces. The apartment company charges 20% VAT to its customers using the accommodation which is obviously fully furnished in the same way as a hotel.

My client is VAT registered through other activities but has not charged VAT on the £20 000 he receives in relation to this block. Is this correct or...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon