To ask the Chancellor of the Exchequer whether VAT is levied on (a) the rental of garages and lock-ups by homeowners and (b) council tenants whose house includes a garage or lock-up. [115820]

Rental charges for garages or lock-ups separate from a house are subject to VAT at the standard rate. Charges levied by private landlords for the letting of houses combined with a garage or lock-up are considered a single supply exempt from VAT, while similar charges levied by councils as part of their statutory obligation are non-business activities, outside the scope of VAT. In either case, no VAT is charged.