Following the decision in Intelligent Managed Services Limited v HMRC5, HMRC has revised its guidance on the VAT treatment of businesses transferred into a VAT group. In the past, where companies only made supplies within a VAT group, HMRC did not consider the transfer to be a TOGC. HMRC now accepts that there is a TOGC where:

  • the business plans to run the same business offering services to other group members
  • those group members use the supplied services to make their own supplies outside the group.

Brief 11 (2016) can be found here.