Hanbridge Storage Services (HSS) provides storage facilities to third parties by providing containers which are located upon open land which HSS owns. The containers are arranged in such a way as to allow vehicular access to each container so that goods may be loaded into or taken from any container with comparative ease. People who hire or rent a storage facility can have unrestricted access during normal working hours but outside such hours, can secure access by arrangement with the onsite security team. The agreement between HSS and the customer states that the customer will have use of the numbered storage container occupying a defined area of land identified on a plan that forms part of the agreement with the customer.
HMRC were of the opinion that the storage units were not ‘immovable property’ and that the letting of the units should be subject to VAT.
The Tribunal found that the supplies made by HSS were exempt from VAT holding that each customer does have exclusive use of a defined space or parcel of land within the curtilage of the HSS’ yard, pursuant to a contractual license. Without that licence no storage could take place on the land.
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