VAT on the purchase of a single garage in a block

My first time on the forum. I hope I'm in the right place. I purchased a single garage via auction. I paid exactly the sum the auctioneer called as my winning bid to the auction house, together with their fees. Their fees attracted VAT but I paid that as part of the payment I made. There are special conditions with the sale, i.e. that I pay the auctioneers fee (attracts VAT) and a contribution towards the seller's fees (attracts VAT). My solicitor is now suggesting I need to pay VAT on the PURCHASE PRICE (my final winning final bid on the fall of the auction hammer). There's no mention of this anywhere in the auction conditions on any of the documents or other information that has been made available to me. From what I can gather, residential property does not attract VAT in the UK. Nor does commercial property unless the seller has opted for tax. The garages are in a block and where originally associated with flats above a shopping parade, but have been split out on separate titles. The seller is a London-based property company. I'm not sure if they are the original owners, or they have been involved in purchase and now resale of the garages in previous years. They're in a poor state of repair and need plenty of work to make them useable. Is it possible the seller can claim it is a commercial property rather than residential, and has opted for tax? What is the likelihood? If so, do I have to pay VAT if I am simply a "private individual" (a common or garden citizen in the UK) with no discernible income, but would normally expect to pay tax on income, savings, etc. Any help provided would be very gratefully received.

A garage is not a residential property (except when it is sold alongside a dwelling), you have stated you have only purchased a garage. It is possible the seller has classified the garages as commercial on the basis they are no longer associated with or linked with residential property. The sale of a garage/commercial property would be exempt from VAT unless the seller has opted to tax, whereupon the garage/commercial property would be subject to VAT (20%). The sales listing at auction should have stated whether the property was opted to tax or not and the reserve price/listing price should also have stated whether VAT was applicable or not. This question is more a contractual/legal issue, whether VAT should have been charged will be a matter of fact. If your solicitor is stating the sale is "plus VAT" (ie, VAT added on top of the hammer price), then ask the solicitor to point out where this is stated in the auction listing/sale T&C's. If the seller insist on charging VAT, I would certainly insist and ask for the seller to provide a copy of their option to tax certificate or some other proof that the garages have ben opted to tax, else if seller cannot prove VAT is applicable on the sale - this asking for proof of option from the seller is standard practice when buying commercial properties and the solicitor should know to ask for this proof or else enter into a debate as to withholding the VAT element until evidence is supplied. As a common or garden member of the public, you are charged VAT everyday on things you buy, a dwelling would usually be an exempt supply (no VAT) and a dwelling purchased with a garage would also be exempt, but a garage on its own, a lockup or some other storage type building would be exempt unless opted to tax and the seller/owner decides whether they want to opt to tax or not and to opt to tax they MUST write to HMRC and notify HMRC in writing, so if the seller has opted to tax, they will have evidence that they have notified HMRC.