From 1 October 2012 the provision of storage facilities are standard rated. This includes self-store and store of both business and personal goods provided that the storage is in a building, unit or enclosed container (see VAT info sheet 10/13).

Conversely, a grant of an interest in land, or a licence to occupy land is generally exempt from VAT (see HMRC Notice 742 Land & Property for full details of exceptions).

The effect of the change for storage means that anyone who is letting out suplus space in a property will need to ask their tenants/licencees what they are doing with that space and then apply VAT as necessary.