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.
Value added tax (VAT) is a tax levied on the supply of goods and services in the UK. UK VAT is levied on certain supplies goods and services supplied within the UK and on the import of goods into the UK from outside the European Union (EU). The purchase of goods and from suppliers located in other EU member states are also subject to VAT and there are special VAT rules that need to be applied by business trading across borders within the EU. The rules are fully explained in the following guidance notes Exporting goods to non-EU countries (until 31 December 2020), Supplies of goods within the EU (until 31 December 2020) and Buying goods from other EU vendors (rules until 31 December 2020)
VAT was introduced in the UK in 1973, as a result of the UK's entry into the European Economic Community.
As the UK is part of the EU, any UK VAT legislation must comply with the relevant EU Directive. In the UK the EU Directives are implemented through the Value Added Tax Act 1994 (VATA 1994) and various Statutory Instruments (SI).
It should be noted that where there are inconsistencies between the UK legislation and the EU Directives EU law takes precedence. As a result, it is possible that an EU member state has incorrectly applied the EU legislation or acted outside the 'intention' of the EU legislation. Therefore, there is a Court of Justice of the European Union (CJEU), also still known
**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
Summary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions over 50g/km but not more than 110g/km (to be reduced to 50g/km and below from April 2021)18%CAA
This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to
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,
The rent-a-room scheme was introduced in the early 1990s to encourage homeowners to take in lodgers.Fundamentally, the rent-a-room scheme is a relief which means that the rent received by an individual from a lodger (up to a prescribed limit) can be exempt from income tax. If the gross rents are
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.