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.”
2In 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.”