Value Added Tax

Business reorganisations ― review and checklist

Produced by Tolley
  • 19 Jan 2022 07:03

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Business reorganisations ― review and checklist

Business reorganisations ― review and checklist

This document can be used by a person involved in either undertaking or assisting with a business reorganisation. It contains details of the points that should be considered and links to the relevant guidance notes that provide further information.

Issue / considerationAction taken (where applicable)Relevant guidance note(s)Link to guidance in De Voil
Does the reorganisation result in the creation of a new entity? If so, does this entity need to register for VAT either as a single entity or part of a VAT group?
It is necessary to consider what supplies the new entity will make (ie is it a pure holding company or will it make taxable supplies, etc).
The timing of the VAT registration is important to make sure that as much input tax can be recovered on costs associated with the reorganisation
See the Holding companies ― overview, Holding companies ― VAT grouping, Holding companies ― setting up a management services arrangement, VAT registration and deregistration ― overview, VAT group and divisional registration ― overview and VAT groups ― applying, amending and disbanding guidance notesDe Voil Indirect Tax Service V2.135–V2.137, V2.171–V2.172, V2.181, V2.189
Is it necessary to advise HMRC of any changes to any existing VAT registration(s) as a result of the reorganisation?
For example, is it necessary to remove a company from the VAT group or advise HMRC of a

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