The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note should be read in conjunction with the VAT group registration guidance note and provides an overview of the various anti-avoidance provisions that have been introduced by HMRC over the years in order to combat the use of VAT groups to avoid VAT.
This guidance note provides an overview of the powers that HMRC has to either refuse to allow a body corporate to join a VAT group or remove it from a VAT group for the protection of the revenue.
The following conditions need to be satisfied in order for a specified body to remain in a VAT group.
Anti-avoidance provisions were introduced in 2004 and as a result introduced a new category called ‘specified bodies’. It should be noted that these provisions only apply when the specified body is carrying on a relevant activity so the rules do not cover dormant companies.
A body corporate is a specified body if it meets all of the following conditions:
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login