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.”
2In that Act, after section 43A insert—
(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.”