Council rent and leaseholder service charge payers
Islington council tenants and leaseholders, paying rent or service charges directly to the council, can have up to two estate parking facilities without incurring VAT.
VAT applies to the third and subsequent estate parking facilities allocated to them.
Council estate freeholders
Owners of a freehold property situated within the grounds of a council estate, who pay service charges directly to the council, incur VAT on all estate parking facilities allocated to them.
Non-Council rent and service charge payers
Anyone who does not pay rent or service charges directly to the council incurs VAT on all estate parking facilities rented in their own name, including children of council tenants or those who sub-let the property from a leaseholder.
Council commercial business leaseholders
Where a business is leasing a commercial property from the council they do not incur VAT on any estate parking facilities rented by them that are situated in the same location as the commercial premises.