New, extended scope of UK VAT grouping rules takes effect from 1 November 2019
Blog Tax Take

On 15 October 2019, HM Treasury made an order appointing 1 November 2019 as the day on which the extended scope of the VAT grouping rules take effect.

Finance Act 2019 included provisions enabling certain individuals and partnerships to be eligible for inclusion in a VAT group. These changes follow the ECJ decision in Larentia + Minerva³. In particular, under these extended VAT grouping rules:

• an individual carrying on a business via a UK establishment and one or more UK bodies corporate are eligible to be treated as members of a VAT group if the individual controls the UK body(ies) corporate; and
• two or more relevant persons (individuals, bodies corporate or Scottish partnerships) carrying on a business in partnership via a UK establishment and one or more UK bodies corporate are eligible to be treated as members of a VAT group if the partnership controls the UK body(ies) corporate

The order can be viewed here.