Commentary

V7.168 Group registration—anti-avoidance measures

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.168 Group registration—anti-avoidance measures

Part V7 Tax planning | Commentary

V7.168 Group registration—anti-avoidance measures

HMRC has been very active in recent years in trying to close loopholes in the legislation that have allowed certain group structures to produce unfair results in terms of input tax recovery. For example, certain groups have benefited from an unfair recovery by introducing or taking a partly exempt company out of the group at a critical point.

HMRC has extensive powers to deal with the manipulation of VAT groups – but these powers will mainly be applied to larger company structures where the amount of tax at stake is considerable.

The best advice to any adviser is

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