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HMRC internal manual

VAT Land and Property

HM Revenue & Customs
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Provision of storage facilities (Item 1ka): exceptions to the new rules

There are specific exceptions to the new rules -

  1. Live animal are specifically excluded from the term “goods” and so facilities for their storage are unaffected by the changes.
  2. If the “relevant structure” is a capital item or is part of a capital item for the purposes of the Capital Goods Scheme and is still subject to adjustments under the scheme by the person making the supply; then if the person making the supply and any person using the facility for storage are connected, the new rules do not apply. Section 13.7 of Notice 742A: Opting to tax land and buildings (HMRC website) provides details of how to tell if persons are connected.
  3. The supply of facilities made to a charity where they are used solely for non-business purposes is excluded. Sections 4 and 5 of Notice 701/1: Charities provide guidance to help charities decide which activities are business and non-business (HMRC website).