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GLOSSARY

Taxable person definition

Published by a LexisNexis Tax expert

What does Taxable person mean?

A person is a taxable person while he is, or is required to be, registered for the purposes of vat (Value Added Tax Act 1994, s 3(1)).

A person is entitled to registration if he makes or intends to make taxable supplies or taxable acquisitions or he makes supplies outside the UK which, if made in the UK, would be taxable supplies. In principle, he is required to register if the value of his actual or expected taxable supplies or 'relevant acquisitions' exceeds the limit for the time being in force, but he can claim exemption from registration in certain circumstances. A person becomes a taxable person on the date from which he should have been registered, so he cannot escape his duties as a taxable person merely by disregarding the duty to register. A taxable person is required to charge tax on all or some of the supplies he makes.

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Ireland—Option agreements—acting for the vendor—checklist

Ireland—Option agreements—acting for the vendor—checklist Call or put option? In a ‘call’ option, the purchaser will have control as it can ‘call’ for the transfer of the property. Ensure that the vendor is aware that its plans for the property may be restricted. A ‘put’ option gives the vendor control in that it can ‘put’ the property on the purchaser, requiring the purchaser to purchase the property. Option period In the case of a call option, a vendor should note that the property may be sterilised for the duration of the option period. For this reason, the vendor should ensure that the agreement includes a clear long-stop date. If the exercise of the option is conditional on the purchaser obtaining planning permission, ensure that any provisions allowing the extension of the option period to cater for the judicial review period are not open-ended. Vendor’s encumbrances If the option agreement restricts the vendor’s freedom to encumber the property, consider whether those provisions will hinder the vendor’s plans for the property. The...

Questions relevant for an asset sale—tax issues—checklist

Questions relevant for an asset sale—tax issues—checklist This Checklist sets out a list of questions that may be relevant to determining the tax implications of an asset sale. This Checklist should be used in conjunction with Practice Note: Key tax considerations in an asset sale. For more information on pre-contract enquiries, see also Practice Notes: Capital allowances on property sales—pre-contract enquiries and Commercial Property Standard Enquiries—CPSE (the CPSEs, prepared by members of the London Property Support Lawyers Group and endorsed by the British Property Federation, provide standard questions relevant to a sale of commercial real estate). Key tax considerations in an asset sale Questions Answers obtained by the adviser General questions Are the parties companies, individuals or other types of entities, such as a partnership, trust or charity? Are there multiple sellers? Are there multiple buyers? Does the seller own legal and beneficial title to the assets? Will the buyer acquire both the legal and beneficial title to the assets at actual completion? ...

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VAT—what is a transfer of a business as a going concern?

The sale of a 'business' is really a sale of assets bundled together. In principle, VAT would therefore be charged on the transfer of each asset in accordance with the normal rules, ie standard rate, reduced rate, zero rate and exemptions applying according to each type of asset, unless the sale of the business is treated as a transfer of a business as a going concern (a TOGC). If the sale of a business is treated as a TOGC it is treated as neither a supply of goods nor a supply of services and is therefore outside the scope of VAT. No VAT is then chargeable on the sale.In order to be treated as a TOGC, the transfer must meet certain conditions that are explained in this Practice Note.If the conditions are met, there are consequences for the buyer and seller that are explained in Practice Note: Consequences of a transfer of a going concern.This Practice Note includes references to EU directives and case law. The UK ceased to be...

When does VAT apply?

A transaction must have five elements for UK VAT to be chargeable. It must:•be a supply of goods or a supply of services•be a taxable supply•take place in the UK•be made by a taxable person, and•be made in the course or furtherance of any business carried on by that personThis Practice Note explains what each of those five elements means.This Practice Note does not cover importation of goods or the circumstances where a UK person may be required to pay UK VAT on the supply of services from abroad, ie the reverse charge, for which see Practice Notes: VAT—the reverse charge on cross-border supplies and VAT—importing goods.This Practice Note includes references to EU Directives and case law; for information on the ongoing significance of EU Directives, and of judgments of the Court of Justice for the UK’s VAT rules, see Practice Note: Retained EU law and tax.A supply of goods or a supply of servicesThe first element has three parts. A transaction must:•be a ‘supply’•be categorised as either a ‘supply...

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Tax warranties—short form

Tax warranties—short form 1 Compliance 1.1 Returns The Company has duly and properly submitted all [material] computations and returns (including all land transaction returns), supplied all information, made all statements and disclosures and given all notices to any relevant Tax Authority as reasonably requested or required by law to be made for the purposes of Tax within any applicable time limits. All such computations, returns, information, statements, disclosures and notices were made on a proper basis and were when submitted and remain at the date of this Agreement complete, correct and accurate in all respects. None of the computations and returns are, or [so far as the Seller is aware,] are likely to be, the subject of any dispute with any Tax Authority. 1.2 Payment The Company has duly paid all Tax for which it has become liable to pay or account for within applicable time limits and the Company is not liable, nor has it within six years prior to the date of this Agreement...

Residence for tax purposes—client guide

Residence for tax purposes—client guide Key points • the concept of residence is used to establish the extent of an individual's liability to UK income tax and capital gains tax (CGT) • an individual’s tax residency status is determined using the statutory residence test (SRT) • an individual can be resident for tax purposes in more than one country at the same time, as residence is determined by reference to a jurisdiction's domestic laws • an individual who is not resident in the UK is taxed only on their UK source income, and certain types of gains arising on the disposal of UK assets, including residential property • both residents and non-residents can be subject to value added tax (VAT), stamp duty land tax (SDLT) and the annual tax on enveloped dwellings (ATED) • prior to 6 April 2025, domicile, rather than residence, was the key factor in determining liability to inheritance tax (IHT). However, from 6 April 2025, liability to IHT is largely determined by the...

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Tax weekly highlights—22 May 2025

This week's edition of Tax weekly highlights includes: (1) the Court of Appeal decision in Impact Contracting Solutions, (2) regulations being made to increase penalties for late payment of tax, (3) an ex-solicitor being given the first individual tax avoidance stop notice, and (4) News Analysis articles being published about the decisions of the First-tier Tax Tribunal (FTT) in Industria Umbrella and Powell.

Court of Appeal—facilitators of VAT fraud can be deregistered even if they make legitimate taxable supplies (Impact Contracting Solutions Limited v HMRC)

Tax analysis: In Impact Contracting Solutions Ltd (ICS), the Court of Appeal upheld the Upper Tribunal (UT) decision that HMRC has the power to deregister a taxable person for reasons related to tax fraud, even if the taxpayer makes other legitimate taxable supplies, provided that the deregistration is a proportionate step in the circumstances.

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