Holding companies ― overview

Produced by Tolley
Holding companies ― overview

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

  • Holding companies ― overview
  • What is a holding company?
  • When can a holding company recover VAT?
  • Is the holding company carrying out a taxable business?
  • Is the holding company the recipient of the supply?
  • Is there a direct and immediate link between the supply and the taxable business of the holding company?
  • What is the effect of VAT grouping a holding company with its subsidiaries?
  • Practical points ― VAT and holding companies

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.

VAT for holding companies is a complex and highly litigated area, particularly when it comes to the entitlement of holding companies to recover the VAT that they incur on costs. HMRC’s policy has developed over time but it still often takes an aggressive approach in denying holding companies VAT recovery on costs. Holding companies should exercise extreme caution when it comes to their VAT affairs and they should plan carefully and early (particularly in relation to acquisitions and disposals of sha

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