The following Tax practice note provides comprehensive and up to date legal information covering:
There are no specific laws, including tax laws, applicable to outsourcing arrangements and no technical legal meaning of the term. Consequently, each outsourcing arrangement will be specific to its own particular facts and will raise a different mix of tax issues, including VAT issues. This Practice Note summarises the main VAT issues to consider in relation to outsourcing arrangements. For the wider tax issues that will be relevant, see Practice Note: Outsourcing—general tax issues.
This Practice Note focuses on contractual outsourcing arrangements. For details on joint venture outsourcing arrangements, see: Joint ventures and tax—overview.
As part of outsourcing arrangements, it may be necessary for the customer to transfer business assets to the service provider in order for the service provider to be able to provide the outsourced services. Business assets transferred as part of an outsourcing may include, for example, office space and IT equipment. Employees may also be transferred as part of the outsourcing arrangements (for further details, see: Supply of staff, below). The transfer of business assets (depending on the specific nature of the assets) and staff would generally be subject to VAT.
If the transfer of business assets constitutes a transfer of a going concern (TOGC), the transfer of the assets will be treated as neither a supply
Free trials are only available to individuals based in the UK
Complete all the fields above to proceed to the next step.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Breach of statutory dutyThis Practice Note considers claims for damages for breach of statutory duty. For guidance on claims for damages for a negligent breach of duty of care outside a statutory duty, see Practice Notes:•Negligence—when does a duty of care arise?•Negligence—when is the duty of care
Direct effect of EU lawWhat is direct effect of EU law?The doctrine of direct effect is a fundamental principle of EU law developed by the Court of Justice of the European Union in Van Gend en Loos. It is a mechanism through which individuals can enforce rights in Member States’ courts, based on EU
Insurable interestThis Practice Note considers insurable interest, including insurable interest in construction and liability insurance. It also considers insurable interest in subrogation, co-insurance and double insurance and the Insurable Interest Bill.What is insurable interest?‘Insurable
Dawn raid—who can raid my organisation and why?IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional
0330 161 1234