Parking facilities (Item 1h): freehold sales of parking facilities
New freehold sales
Freehold sales of new (less than 3 years old) or partly completed garages, car parks or car parking facilities, other than in conjunction with sales of dwellings, are compulsorily standard-rated by Schedule 9, Group 1, Item 1, Exception (a).
Freehold sales which are not new
The freehold sale of parking facilities which are not new is exempt under Schedule 9, Group 1, Item 1 (subject to an option to tax).
The reason for the difference in treatment between lettings and sales lies in EC law. Article 135(1)(l) applies to leasings and lettings, but not sales. Sales are dealt with at Articles 135(1)(j) and 135(1)(k). The taxing provision for parking is confined to Article 135(2)(b).
The sale of a new dwelling, together with a garage or parking space, by the person constructing that dwelling is zero rated (but standard rated if the dwelling is ‘holiday accommodation’ as a result of a occupancy restriction).