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.


VAT Groups

Scope of VAT Grouping: consultation

Scope of VAT grouping: consultation outcome


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