The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note has been updated to reflect the changes resulting from the CJEU decisions in DNB Banka AS (C-326/15), Aviva (C-605/15), Commission v Luxembourg (C-274/15) and Commission v Germany (C-616/15), which limit the scope of the CSE with effect from 1 June 2018.
CSE applies when two or more organisations with exempt and / or non-business activities join together to purchase services on a cooperative basis, and in doing so, form a separate entity, a cost sharing group (CSG), to supply themselves with qualifying services at cost. This ensures that an undertaking that legitimately purchases services to make supplies under one of the social exemptions is not burdened with additional VAT because it cannot purchase such services entirely on its own. This type of arrangement enables the creation of the same economies of scale for smaller businesses and organisations that larger businesses and organisations naturally enjoy. Thus the more members of a CSG there are, the greater the potential savings and lower the costs per member of operating the relevant CSG. The CSG is a separate taxable person from that of its members and is therefore able to make supplies for VAT purposes to its members. These supplies will be exempt from VAT if the relevant conditions are met. HMRC states that there are two fundamental requirements that must be satisfied before the CSE can be used:
•“the CSG must consist only of operators carrying out an activity which is
“the CSG must consist only of operators carrying out an activity which is
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large
IntroductionUK resident individuals who are non-UK domiciled can benefit from the remittance basis of taxation. The remittance basis allows for relief from UK taxation for non-UK sources of income which are not brought in (or remitted) to the UK. A remittance is any money or other property which is,
Business asset disposal relief (previously known as entrepreneurs’ relief) is a capital gains tax (CGT) relief that allows business owners with chargeable gains on qualifying business assets to pay CGT at a rate of 10%. For disposals made on or after 11 March 2020, the relief is available on up to
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.