In principle, a charge made for the granting of facilities for parking, including garaging a vehicle, is standard-rated (VATA 1994, Sch. 9, Grp. 1, item 1, para. (h)).

In 1983, HMRC advised that such charges levied by a local authority can be regarded as being in respect of a non-business activity, however, where a local authority house or flat, and up to two garages or parking spaces, are let in conjunction with each other, i.e. by the same local authority to the same tenant and in reasonable proximity to each other.

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