VAT on residential property rental income

I am currently paying 20% VAT on rental income from our residential property. Should I be paying VAT on the income? Thanks.

Residential rent is always exempt. If you say live in a flat above a shop, the shop rent might be plus VAT but cannot be plus VAT for the flat. Link here, section 12 notes even service charges are exempt when related to a dwelling. https://www.gov.uk/guidance/vat-on-land-and-property-notice-742#section12 The rental agreement should not have even mentioned VAT, so you perhaps need a word with your landlord to find out why, they may have just assumed they had to charge VAT and not aware if the rules.

Hi,

Residential rent should be exempt from VAT. You can see the guidance here:

The liability of a supply of land

You should contact your landlord to discuss this.

Thank you.