V6.305 Background

Local authorities and similar bodies

V6.305 Background

Local authorities and other public bodies are not generally involved in “business” activities as they are primarily concerned with providing public services funded by central government and by rates levied on the local population. Such services include school education, housing, social care, road infrastructure and planning. Under normal VAT regulations, such bodies would have severely restricted VAT recovery. To ensure that VAT is not an additional burden on the ratepayer, the VAT system includes provisions for these bodies to reclaim the VAT on costs relating to their “non-business” activities.

The relevant legislation is

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial