½Û×ÓÊÓƵ

Holding companies ― VAT status of activities

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

Holding companies ― VAT status of activities

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

This guidance note examines how to determine the VAT status of a holding company’s activities. In particular, it looks at:

  1. •

    when a holding company is or is not in business

  2. •

    if a holding company is in business, whether its activities are exempt or taxable

The VAT status of activities is particularly important when deciding whether a holding company can recover VAT on costs. VAT recovery is only possible where the holding company has taxable business activities (amongst other factors).

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

This is a complex and much litigated area of VAT law. For detailed discussion of the case law history surrounding the link between supplies and consideration, see De Voil Indirect Tax Service V3.103, and for business activities generally, see De Voil Indirect Tax Service V2.201B.

Deal fees ― buying and selling subsidiary companies

When a holding company buys or sells a subsidiary company it may incur a significant amount of professional fees.

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

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more Read more

Long service awards

Long service awardsEmployee recognition by an employer can be an important motivational tool, as well as having a positive effect on retention. Most employer awards made to an employee are treated as taxable earnings under ITEPA 2003, s 62 or as a benefit under ITEPA 2003, s 201 because they are

14 Jul 2020 12:11 | Produced by Tolley Read more Read more

Bare trusts ― income tax and CGT

Bare trusts ― income tax and CGTThis guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax

14 Jul 2020 15:34 | Produced by Tolley Read more Read more