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New hotel

08 June 2006
Issue: 4061 / Categories: Forum & Feedback

Our clients have recently purchased a small hotel and we should appreciate some advice regarding the VAT implications. We understand that the provision of accommodation is standard rated, but does this apply to the provision of food in all circumstances?
The hotel has a large function room, which is hired out for receptions and family gatherings, etc. Would this be standard rated and would the treatment be affected if food were supplied?

Our clients have recently purchased a small hotel and we should appreciate some advice regarding the VAT implications. We understand that the provision of accommodation is standard rated but does this apply to the provision of food in all circumstances?
The hotel has a large function room which is hired out for receptions and family gatherings etc. Would this be standard rated and would the treatment be affected if food were supplied?
Our clients also intend to allow hirers to provide their own food and drink although they plan to make a higher rental charge for this and perhaps charge 'corkage' as well.
There is also a large garden which would accommodate a marquee and again we would be grateful if readers could advise whether there are any particular VAT implications relating to such a hire and/or the provision of entertainment.
Any other related hints and...

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