VAT on allotments?

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Posted by shazzbat on November 21, 2011, 9:00 am
 
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We just got our renewal notice for the allotment, and for the first time VAT
has been added. Have allotments recently been brought into the VAT fold, or
is this a cock-up? (Our allottments are owned by a private estate and
administered by an estate agent)

Steve




Posted by Jake on November 21, 2011, 10:21 am
 On Mon, 21 Nov 2011 14:00:02 -0000, "shazzbat"


Councils generally treat allotments as non-business lettings and so
outside the scope of VAT.

In your case, the allotment is let as a business letting so whilst the
rental is still essentially VAT exempt, that exemption can be waived.
Confusing but if the landlord or the agent has decided to waive the
exemption then they charge VAT and HMG gets a bit more tax income.
They don't benefit at all as they have to pay the VAT over, of course.

Probably you need to ask the question of the agent - have they waived
the exemption or made a mistake? You have nothing to lose by asking
the question.

Cheers, Jake
=======================================
URGling in between collecting leaves at
the dryer (east) end of Swansea Bay.