Commentary

V7.192 Disaggregation—approach to be adopted by advisers acting for clients

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.192 Disaggregation—approach to be adopted by advisers acting for clients

Part V7 Tax planning | Commentary

V7.192 Disaggregation—approach to be adopted by advisers acting for clients

A key tip for advisers is to stand back and ask the question: 'How would this arrangement look in the eyes of an HMRC officer?' Would the arrangement come across as being two or more distinct businesses, each aiming to make profits in their own right, or would it appear that an artificial situation has been created, with the aim of ensuring at least one of the businesses does not have to register and pay VAT.

To help with this assessment, there are five key questions to ask.

  1.  

    •     What is

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