Commentary

V7.169 Group registration—holding companies

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.169 Group registration—holding companies

Part V7 Tax planning | Commentary

V7.169 Group registration—holding companies

The main function of many holding companies is to own shares and receive dividends in subsidiary companies – but they will sometimes provide management services and thus make management charges to these subsidiary companies, and employ staff in support functions such as finance and administration.

As long as the management services are genuine supplies, then the holding company will be able to register for VAT in its own right, as these supplies are taxable. However, it is common for the holding company to be a member of a VAT group.

When reviewing the validity of management services, HMRC

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