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Building use = determining factor - VAT on rent or not
VAT notice 742A at para 3.5 is a starting point (the quoted text is addressed to a landlord in the context of their ability to levy VAT at standard rate or not on rent charged to a charity):
3.5 Buildings to be used solely for a relevant charitable purpose
Your option to tax will not apply if you supply a building, or part of a building, and the purchaser or tenant informs you before you make your supply that they intend to use it solely for a relevant charitable purpose, other than as an office for general administration for example, head office functions of the charity. Whilst there’s no requirement for a formal certificate to be given, HMRC strongly recommends that you obtain confirmation of the intended use in writing and retain it with your VAT records.
Where part of a building is intended to be used solely for a relevant charitable purpose (other than as an office) and part is not, your option to tax will not apply to the part used for a relevant charitable purpose, provided that the different functions are carried out in clearly defined areas. In these circumstances the value of your supply should be fairly apportioned between the exempt and taxable elements.
Relevant charitable purpose means use by a charity for its non-business activities, or as a village hall or similarly to provide social or recreational facilities for a local community. See VAT Notice 701/1: charities for more information on non-business activities carried out by such bodies and VAT Notice 708: buildings and construction for further details about the meaning of ‘solely for a relevant charitable purpose’.