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