Commentary

BB/32B/04 VAT—partial exemption—apportionment of VAT on share issues and other incidental financial supplies

Part V16 Forms and other HMRC material

BB/32B/04 VAT—partial exemption—apportionment of VAT on share issues and other incidental financial supplies

BB/32B/04 VAT—partial exemption—apportionment of VAT on share issues and other incidental financial supplies

Business Brief, Issue 32. 2 December 2004

This Business Brief article summarises a change to the VAT rules for businesses making exempt supplies of shares (and other exempt incidental financial transactions) that was announced by the Chancellor in his Pre-Budget Report. No other businesses are affected. Full details are given in VAT Information Sheet 09/04 (V16.896, Division V16.5), which has been published on Customs' website—www.hmce.gov.uk.

Background

Businesses making exempt supplies (such as an issue of shares to UK or EU-based investors) cannot recover VAT on related costs unless the amounts

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