Commentary

749 Local authorities and similar bodies

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

749 Local authorities and similar bodies

Part V8 HMRC Notices | Commentary

749
Local authorities and similar bodies

August 2018

This notice cancels and replaces Notice 749 (February 2016).

1 Overview

1.1 This notice

This notice explains three things—

  1.  

    (1)     Which activities of local authorities and similar bodies are business or non-business for VAT purposes.

  2.  

    (2)     The VAT registration requirements for local authorities.

  3.  

    (3)     When local authorities and certain similar bodies can reclaim VAT incurred on costs that relate to their non-business activities.

There's also comprehensive guidance in the VAT Government and Public Bodies Manual.

Further information is available on:

  1.  

    —     museums and galleries – VAT Notice 998 “Refund scheme for museums and galleries”

  2.  

    —     academy schools – VAT Education Manual 70000

  3.  

    —     non-departmental public bodies – VAT Government and Public Bodies Manual 9640

  4.  

    —     palliative care, air ambulance, search and rescue and medical courier charities – VAT Notice 1001 “Refund scheme for certain charities”

Main narrative treatment—V5.162.

1.2 Changes to this notice

The changes to this notice are:

  1.  

    —     the contact details for HMRC and the procedure for 'Putting things right' have been updated

  2.  

    —     the overview has been changed to give a better understanding of the work of public bodies and the general provisions for VAT reclaims

  3.  

    —     the name and number of public notices has been updated

  4.  

    —     further information has been given on the calculation of VAT attributable to exempt supplies

  5.  

    —     new rules on occasional breaches of the insignificance test

  6.  

    —     paragraphs 12.3, 12.4, and 12.6 have been amended

1.3 The law

VATA 1994—

  1.  

    —     VATA 1994 s 41A – which activities are business or non-business

  2.  

    —    

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