VAT on mooring rights

VAT on mooring rights

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My solicitor client has a non-EU client buying a riverside property in England.  They have asked for Counsel's opinion about an aspect of mooring rights at the property.

I think VAT is chargeable because it involves land in the UK.  However, my client thinks mooring rights are not "land" for this purpose.  I have struggled to find anything useful that informs me either way, although I have not seen anything to dissuade me from my view.

Naturally, they want to persuade us to tell Counsel that VAT is not chargeable and hence reduce their disbursement bill.

Anyone direct me to the answer or have any experience of such things?

Replies (3)

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By Steve Kesby
13th Sep 2013 15:54

The definition of land...

... is in Schedule 1 of the 1978 Interpretation Act; Land includes buildings and other structures, land covered with water, and any estate, interest, easement, servitude or right in or over land.

I'd suggest that a mooring right was a right over land covered with water.

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Library Drinking
By Cambridge Business
13th Sep 2013 16:22

VAT on Mooring rights

Update on this.

Land & property Notice 742 provides some guidance along with Notice 701/20 on Houseboats and caravans.

 

Problem now is that I have just learned that the development is mixed - houseboats as well as other moorings.  Not sure what to do.  Apportion I guess?

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chips_at_mattersey
By Les Howard
17th Sep 2013 12:43

Mooring Rights

Steve is right about the meaning of land. Online guidance at VATLP17000 confirms the VAT status of mooring rights.

The question begs a further question - will the client make supplies in the UK? And if so, what is the nature of those supplies? If taxable, then there is an obligation to register for VAT.

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