Thank you for your prompt reply
Are you sure you have got this right - my friend seemed certain. I note in the reference you gave me it had the clauses below - which although it does not specifically talk about selling a leasehold it does talk about the difference between providing a garage with and without (as is my case another property)
If you read - 'granting the right to use a facility' as selling a leasehold - I think I would have to charge VAT - what is your view - Thanks
"4.2 When do I make a standard-rated supply of parking facilities?
If you make a grant of the right to use facilities which are either designed for parking vehicles or provided specifically for that purpose your supply is standard-rated except in the circumstances described in paragraphs 4.4 and 4.5. The following are examples of standard-rated supplies of parking facilities:
- a letting or licence of a garage or designated parking bay or space"
With respect you are getting confused. You are selling a lesehold interest in land. Such transactions are exempt from VAT.
By selling a leasehold interest you are not 'letting or licence of a garage or designated parking bay or space;' you are selling a leashold interest, an entirely different kettle of fish. The Gov UK guidance is quite positive; leasehold estates in land of this type are exempt supplies.
I know that UK taxation can be a trifle crazy, but the idea of people having to register for VAT when they sell their garages and then deregister immediately thereafter is in the realms of Alice in Wonderland!
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Thank you for your reply.
Unfortunately taking to my friend again I am still not sure you have got this right.
I will speak to a lawyer tomorrow and pass on if he agrees with you or not - I will do this before 5:00pm tomorrow.
Hi - I have decided you pay your bill as you showing me the reference document which I could not find was of value to me.
But two separate lawyers have now confirmed to me that there is an anomaly with selling leases on private lock up garages over £82,000 that are not being sold with dwelling. The Partner of one a city law firm will be sending me the details today.
Thank you for your support.
I still hold to my view that individuals having to register for VAT to sell a garage and then immeditely deregister is simply ludicrous.
It actually all shown in the document you gave me.
It only becomes an issue, in my circumstances, if you are selling a leasehold garage, over £82,000 and it is not being sold with a nearby dwelling. ref Section 4.4.1
So you don't need to register for VAT etc for most transactions ....
But never mind... Thanks - document was useful