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 provides an overview of the VAT treatment of supplies of research and vocational training.
This should be read in conjunction with the following guidance notes:
Supplies of education
Supplies of goods and services closely related to education
HMRC regards research as including the following from a VAT perspective:
original investigative work undertaken in order to gain, expand or advance knowledge and understanding
developing a particular software programme intended to assist with a particular research project before the main body of the research commences
De Voil Indirect Tax Service V16.1016; VATA 1994 Sch 9, Group 6; VATEDU37000
If the research is wholly funded by grants, then it will be treated as a non-business activity and the grant money will be outside the scope of VAT.
Prior to 1 August 2013, research undertaken as a business activity was exempt from VAT if it has been undertaken for an eligible body. The UK received a notification from the European Commission that the VAT exemption for business supplies of research between eligible bodies (mainly government departments, schools, universities, charities and other public bodies) does not comply with EU law. As a result of this notification, HMRC withdrew the exemption with effect from 1 August 2013. However, there was a transitional arrangement for supplies of business research where the written contract was entered into before 1 August 2013; whether or not work has already commenced, the exemption continues to apply to services within the scope of that contract. From a VAT perspective, any
**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
Income and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax 2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting the foreign tax
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
What is structures and buildings allowance (SBA)?From 29 October 2018, expenditure on constructing a non-residential building or structure, or in certain cases, expenditure on acquiring such a building or structure, qualifies for an SBA. The following note has been updated for the changes announced
This guidance note considers the capital gains tax implications where shares are sold in exchange for new shares.The consideration paid by a purchasing company to the shareholder(s) for their shares in a target company could be in the form of either:•new shares in the vendor in exchange for shares
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.