Commentary

V7.174 Group and divisional registration—planning points to consider

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.174 Group and divisional registration—planning points to consider

Part V7 Tax planning | Commentary

V7.174 Group and divisional registration—planning points to consider

The following points should be given consideration.

  1.  

    •     For a group registration to be accepted by HMRC, the control test needs to be met.

  2.  

    •     A holding company making management charges to its trading subsidiaries will have to charge VAT on these supplies if it is registered for VAT. This could lead to a source of non-claimable VAT if the recipient company makes some exempt supplies. A group registration avoids this problem because no VAT is charged on supplies between entities within the same group.

  3.  

    •     However, be aware of the

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