Commentary

V7.488 Tour Operators' Margin Scheme—the agency scheme

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.488 Tour Operators' Margin Scheme—the agency scheme

Part V7 Tax planning | Commentary

V7.488 Tour Operators' Margin Scheme—the agency scheme

As noted at V7.487, it is possible for one business to be involved in different travel service transactions in different capacities.

A possible planning measure, referred to as 'the agency scheme' in HMRC Information Sheet 4/96 (V16.824, Division V16.5), involves a tour operator acting as a disclosed agent in relation to supplies of passenger transport from third party transport providers. When the agency scheme is correctly implemented the supply of passenger transport is made to the traveller by the transport provider and is not within the TOMS. As a result, the transport element of

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