V5.213C Prescribed notifiable arrangements

Part V5 Compliance, enforcement and appeals

V5.213C Prescribed notifiable arrangements

V5.213C Prescribed notifiable arrangements1

As noted in V5.213, any arrangements (or proposal for arrangements) are notifiable to HMRC if they pass three tests2:


    (1)     they fall within any description prescribed by the Treasury by regulations


    (2)     they enable, or might be expected to enable, any person to obtain a tax advantage


    (3)     they have a tax advantage as the main benefit (or one of the main benefits)

Tests (2) and (3) are covered above; details of the arrangements ('hallmarked arrangements', or simply 'hallmarks') prescribed by the Treasury are set out below. They fall into two categories: arrangements which apply specifically to VAT, and arrangements which apply generally (ie to any indirect tax).

Arrangements which apply specifically to VAT

Retail supplies—splitting and value shifting3

This hallmark is intended to capture arrangements that split up a supply to a retail customer to benefit from a different VAT treatment for one or more of those split supplies. For example, to quote from HMRC's example in Notice 799 (March 2019) para 7.6.8:

'An operator of a holiday park provides residential facilities to holiday-makers for a standard weekly charge which is standard rated. It then decides to provide its services from 2 companies. Company A provides the holiday accommodation and Company B provides various services to the holiday maker such as water and electricity. The overall weekly charge to the holiday maker doesn't change and the holiday maker has no practical choice but to accept and pay for B's services. The aim is that B's services will be charged

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