SCHEDULES

SCHEDULE 18VAT groups: eligibility

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.