VATGPB8743 - Other local authority activities: miscellaneous (F to M): homeless persons services

Storage of belongings

As part of their duty to house homeless persons local authorities are expected to take reasonable steps to protect the person’s property, which will normally mean storing it for them. (Section 7(1) of the Housing (Homeless Persons) Act 1977)

Charges made by the local authority to the homeless person for the storage are outside the scope of VAT. The authority can also dispose of the property and this too is outside the scope of VAT.

The VAT incurred by a local authority on the costs of storing and disposing of this property can be recovered under section 33.