SCHEDULES

SCHEDULE 18VAT groups: eligibility

Section 53

PART 1Eligibility of individuals and partnerships

1

1

Section 43A of VATA 1994 (groups: eligibility) is amended as follows.

2

In subsection (1), in the opening words—

a

for “bodies corporate” substitute “ UK bodies corporate ”;

b

omit “each is established or has a fixed establishment in the United Kingdom and”.

3

Omit subsections (2) and (3).

4

At the end insert—

4

An individual carrying on a business and one or more UK bodies corporate are eligible to be treated as members of a group if the individual—

a

controls the UK body corporate or all of the UK bodies corporate, and

b

is established, or has a fixed establishment, in the United Kingdom in relation to the business.

5

Two or more relevant persons carrying on a business in partnership (“the partnership”) and one or more UK bodies corporate are eligible to be treated as members of a group if the partnership—

a

controls the UK body corporate or all of the UK bodies corporate, and

b

is established, or has a fixed establishment, in the United Kingdom in relation to the business.

6

In this section—

a

“UK body corporate” means a body corporate which is established or has a fixed establishment in the United Kingdom;

b

“relevant person” means an individual, a body corporate or a Scottish partnership.

7

Section 43AZA contains provision for determining for the purposes of this section whether a body corporate, individual or partnership controls a UK body corporate.

2

In that Act, after section 43A insert—

43AZASection 43A: control test

1

This section applies for the purposes of section 43A (and expressions used in this section have the same meaning as in that section).

2

A body corporate (“X”) controls a UK body corporate if—

a

X is empowered by statute to control the UK body corporate's activities, or

b

X is the UK body corporate's holding company.

3

An individual (“Y”) controls a UK body corporate if Y would, were Y a company, be the UK body corporate's holding company.

4

Two or more relevant persons carrying on a business in partnership (“the partnership”) control a UK body corporate if the partnership would, were it a company, be the UK body corporate's holding company.

5

In this section “holding company” has the meaning given by section 1159 of, and Schedule 6 to, the Companies Act 2006.

PART 2Consequential amendments

VATA 1994

3

VATA 1994 is amended as follows.

4

In section 18A (fiscal warehousing), in subsection (9), for “body corporate which” substitute “ person who ”.

5

1

Section 43 (groups of companies) is amended in accordance with this paragraph.

2

In subsection (1), for “bodies corporate” substitute “ persons ”.

3

In subsection (1AA)—

a

in paragraph (c)(ii), for “body which” substitute “ person who ”;

b

in the closing words, for “body” substitute “ person ”.

6

In section 43AA (power to alter eligibility for grouping), in subsection (1), for “section 43A” substitute “ sections 43A and 43AZA ”.

7

1

Section 43B (groups: applications) is amended in accordance with this paragraph.

2

In subsection (1), for “bodies corporate, which” substitute “ persons, who ”.

3

In subsection (2)—

a

in the opening words, for “bodies corporate” substitute “ persons ”;

b

in paragraph (a), for “body corporate, which” substitute “ person, who ”;

c

in paragraph (b), for “body corporate” substitute “ person ”;

d

in paragraph (d), for “bodies corporate” substitute “ persons ”;

4

In subsection (3)—

a

in the opening words, for “bodies corporate” substitute “ persons ”;

b

in paragraph (b), for “bodies” substitute “ persons ”;

5

In subsection (5)—

a

in paragraph (a), for “bodies corporate” substitute “ persons ”;

b

in paragraph (b), for “body corporate” substitute “ person ”.

8

1

Section 43C (groups: termination of membership) is amended in accordance with this paragraph.

2

In subsection (1), for “body corporate” substitute “ person ”.

3

In subsection (3)(a) and (b) and in the closing words, for “body” substitute “ person ”.

4

In subsection (4)(a) and (b), for “body” substitute “ person ”.

9

1

Section 43D (groups: duplication) is amended in accordance with this paragraph.

2

In subsection (1), for “body corporate” substitute “ person ”.

3

In subsection (2), for “body which” substitute “ person who ”.

4

In subsection (3)—

a

in paragraph (b), for “bodies” substitute “ persons ”;

b

in the closing words, for “body or bodies” substitute “ person or persons ”.

5

In subsection (4)(b), for “body” substitute “ person ”.

6

In subsection (5), for “body” substitute “ person ”.

10

In section 44 (supplies to groups), in subsection (1)(a) and (b), for “body corporate” substitute “ person ”.

11

In section 53 (tour operators), in subsection (2)(d), for “body corporate” substitute “ person ”.

12

In section 97 (orders, rules and regulations), in subsection (4)(ca), for “bodies” substitute “ persons ”.

13

1

Schedule 9 (exemptions) is amended in accordance with this paragraph.

2

In Group 14, in Note (13)—

a

in the opening words, for “body corporate” substitute “ person ”;

b

in paragraph (a) for “body” substitute “ person ”;

c

in paragraph (b)—

i

for “body corporate, or of any other body corporate which”, substitute “ person, or of any other person who ”;

ii

for “body, at a time when that body” substitute “ person, at a time when that person ”.

d

in paragraph (c), for “body corporate” substitute “ person ”.

3

In that Group, in Note (14), for “body corporate's” substitute “person's”.

14

1

Schedule 9A (anti-avoidance provisions: groups) is amended in accordance with this paragraph.

2

In paragraph 1(2), for “body corporate” substitute “ person ”.

3

In paragraph 2—

a

in sub-paragraph (1)(a), for “body corporate” substitute “ person ”;

b

in sub-paragraph (2), for “body corporate's” substitute “person's”.

4

In paragraph 3—

a

in sub-paragraph (1)(a) and (b), for “body corporate” substitute “ person ”;

b

in sub-paragraph (3), for “body corporate” (in both places) substitute “ person ”;

c

in sub-paragraph (5), for “body corporate which” substitute “ person who ”.

5

In paragraph 5—

a

in sub-paragraph (1)(b)—

i

for “body corporate which” substitute “ person who ”;

ii

for “that person” substitute “ the person mentioned in paragraph (a) ”;

b

in sub-paragraph (2)—

i

for “body corporate (“the relevant body”)” substitute “ person (“the relevant person”) ”;

ii

for “that body or to any body corporate which” substitute “ that person or to any person who ”;

iii

for “the relevant body” substitute “ the relevant person ”.

6

In paragraph 6—

a

in sub-paragraph (7)(b), for “body corporate that” substitute “ person who ”;

b

in sub-paragraph (11)(b)—

i

for “body corporate which” substitute “ person who ”;

ii

for “that person” substitute “ the person mentioned in paragraph (a) ”;

c

in sub-paragraph (11)(c), for “body corporate which” substitute “ person who ”.

15

1

Schedule 10 (buildings and land) is amended in accordance with this paragraph.

2

In paragraph 3—

a

in sub-paragraph (1), for “body corporate” substitute “ person ”;

b

in sub-paragraph (2)—

i

in the opening words (in both places) and paragraph (c), for “body corporate” substitute “ person ”;

ii

in paragraph (c), for “that body” substitute “ that person ”;

c

in sub-paragraph (3), for “body corporate” substitute “ person (“P”) ”;

d

in sub-paragraph (4)—

i

in the opening words, for “The body corporate” substitute “ P ”;

ii

in paragraphs (a), (aa), (b) and (c), for “the body corporate” substitute “ P ”;

e

in sub-paragraph (5)—

i

in the opening words, for “The body corporate” substitute “ P ” and for “the body corporate” substitute “ P ”;

ii

in the closing words, for “the body corporate” substitute “ P ”.

3

In paragraph 4—

a

in sub-paragraph (1), for “body corporate which” substitute “ person (“P”) who ”;

b

in sub-paragraph (2), for “the body corporate, it” substitute “ P, P ”;

c

in sub-paragraph (3)(b), for “the body corporate” substitute “ P ”;

d

in sub-paragraph (3)(c)—

i

for “the body corporate” substitute “ P ”;

ii

for “it” substitute “ P ”;

e

in sub-paragraph (4)(b)—

i

for “the body corporate” substitute “ P ”;

ii

for “it” substitute “ P ”;

f

in sub-paragraph (5), in the opening words—

i

for “the body corporate” substitute “ P ”;

ii

for “it” substitute “ P ”;

g

in sub-paragraph (6)(a)—

i

for “the body corporate” substitute “ P ”;

ii

for “its” substitute “P's”;

h

in sub-paragraph (6)(b), for “the body corporate” substitute “ P ”;

i

in sub-paragraph (7), for “the body corporate” substitute “ P ”.

4

In paragraph 21—

a

in sub-paragraph (1)(b)—

i

for “body corporate” substitute “ person ”;

ii

for “the body” substitute “ the person ”;

b

in sub-paragraph (3)(a), for “body corporate which” substitute “ person who ”;

c

in sub-paragraph (9)(b), for “body corporate which” substitute “ person who ”;

d

in sub-paragraph (11)(b), for “body corporate which” substitute “ person who ”;

e

in sub-paragraph (12), in the definition of “relevant group member”—

i

after “any person” insert “ (“P”) ”;

ii

for “body corporate which” substitute “ person who ”;

iii

for “that person” substitute “ P ”.

5

In paragraph 35(3), for “body corporate” substitute “ person ”.