July 10 Britain's Big Yellow Group Plc
said it sought legal opinion to challenge a proposal in Finance
Minister George Osborne's budget to introduce VAT on self
storage companies from October 1.
The rental of self storage units is currently exempt from
sales tax, having been treated as a licence to occupy land in
the same way as renting commercial property.
"There may be grounds to challenge the decision, and we are
currently considering our legal options," said Big Yellow, which
helps people and businesses store goods, equipment and furniture
while moving homes and offices.
Any appeal to the tax commissioner would only take place
after October 1, when the tax is proposed to be introduced, the
Big Yellow, along with larger rival Safestore Holdings Plc
, have warned the introduction of VAT would hurt the
self storage industry across the UK.
The company, also said total store revenue at its 54 wholly
owned stores grew 10 percent to 16.9 million pounds ($26.23
million) for the first quarter.
Shares in Big Yellow were down about 1 percent at 290.4
pence on the London Stock Exchange at 0720 GMT.