Finance Bill 2019 includes proposals for individuals and partnerships to join VAT groups with companies. HMRC has also published a policy paper, ‘VAT grouping eligibility criteria changes’.
Draft legislation is included in the Finance Bill 2019 which will enable an individual or partnership to join a VAT group.
To be eligible, the legislation requires the individual or partnership to meet the following conditions:
- They control the UK company (or companies) that are in the group.
- The individual or partnership has a UK business establishment.
- They are liable or entitled to be Registered for VAT.
'Control' here means that, if they were a company, the individaul or partnership would be the 'holding company' of the other body corporates as defined by s 1159 of, and Schedule 6 to, the Companies Act 2006.
The proposed draft legislation will take effect from Royal Assent.
The full policy paper and draft legislation can be read here. This follows a December 2016 consultation, Scope of VAT Grouping, and December 2017 response.
Links
Scope of VAT Grouping: consultation
Scope of VAT grouping: consultation outcome
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