½Û×ÓÊÓƵ

Holding companies ― VAT grouping

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Holding companies ― VAT grouping

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

This guidance note looks at the effect of VAT grouping a holding company with its subsidiaries.

For an overview of VAT and holding companies generally, see the Holding companies ― overview guidance note.

For VAT grouping generally, see the VAT group and divisional registration ― overview guidance note.

How does VAT grouping impact a holding company’s entitlement to recover VAT?

Subject to meeting the conditions outlined in the VAT groups ― conditions guidance note, a holding company may join a VAT group. Even holding companies which do not have any trading (business) activities or which make only exempt supplies may be entitled to VAT group with their subsidiaries.

However, HMRC will not accept that joining a VAT group on its own will automatically give rise to an entitlement to VAT recovery.

HMRC has indicated that VAT grouping cannot change a non-economic activity into an economic activity (for the VAT status of activities, see the Holding companies ― VAT status of activities guidance note). This

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Allowable expenses for property businesses

Allowable expenses for property businessesGeneral itemsMany of the principles applying to allowable expenses for property businesses are similar to those that apply for trading and the rules for individuals in a property business are generally the same as for companies with some exceptions which are

14 Jul 2020 13:26 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more

Spouse exemption from inheritance tax

Spouse exemption from inheritance taxArguably, the most important inheritance tax exemption is the spouse exemption from inheritance tax.There is no IHT to pay on gifts from husband to wife and vice versa, or from one civil partner to the other (referred to collectively in this note as ‘spouses’).

14 Jul 2020 13:56 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more Read more

Temporary differences

Temporary differencesCalculation of temporary differencesThe temporary difference arising in respect of an asset or liability is calculated by comparing the carrying value of that asset or liability with its tax base.IAS 12 uses the concept of taxable or deductible temporary differences. Whether a

14 Jul 2020 13:49 | Produced by Tolley in association with Malcolm Greenbaum Read more Read more