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.
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.