VAT liability for renting land to touring caravans

What is the VAT liability for renting land to touring caravans

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Hello all

We have a client who owns a farm.

He is renting to individual touring caravans and we're trying to establish whether this is an exempt supply of land, due to the fact that he provides no facilities - just a bare field... can anyone clarify the regulations on this... HMRC have been very vague when asked directly and have simply said - "well it's a grey area so best charge VAT to be on the safe side"!!!

He also rents out a barn for weddings - I don't believe he is involved in any other aspect of the wedding, simply the supply of land - is this also exempt?

Would love to hear your views...

Replies (6)

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paddle steamer
By DJKL
15th Mar 2017 12:13

Re caravan pitches:

For use or as storage?
Term?
Does he advertise as a caravan park?

Re the weddings, sounds like these may be exempt provided they dot the i's and cross the t's and it is as described- e.g.what happens re furniture/ cleaning post event etc?

Thanks (1)
chips_at_mattersey
By Les Howard
15th Mar 2017 12:42

Caravan pitches; I think standard rated. The caravan pitches are not for residential caravans (Sch 9, Grp 1, Items 1(e) to (h); HMRC Notice 701/20, para 4.1 refer).
I would argue that the hire of a barn for weddings is exempt; but I am in ‘discussion’ with HMRC on this issue!

Thanks (1)
avatar
By TinaPS
20th Mar 2017 09:28

Strictly speaking they are not caravan pitches - he simply has a bare field that he allows overnight stays in. We were previously under the impression that as he provides no facilities at all, this was an exempt supply of land. When is something considered a caravan pitch? Is it simply if a caravan uses it, or is it if you provide a specific facility for a caravan?

Thanks (0)
Replying to TinaPS:
By mrme89
20th Mar 2017 09:44

They are caravan pitches; an area of land occupied by a caravan.

Thanks (1)
Replying to mrme89:
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By TinaPS
20th Mar 2017 11:11

Thanks - however looking at the guidance - motor homes are not regarded as caravans - I've just discovered he only permits motor homes, not caravans.. as there is no guidance including motor homes would it be safe to assume exempt?

Thanks (0)
Replying to TinaPS:
By mrme89
20th Mar 2017 11:25

I believe that it would fall under item (h), referred to by Les, and thus, standard rated.

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