On 14 January 2016, HMRC announced the launch of a consultation on the UK’s VAT grouping rules, in light of the ECJ decisions in Skandia5 and Larentia + Minerva6. See here and here for our earlier commentary on these decisions.

The 12-week consultation, to be launched in spring 2016, follows meetings with business representative bodies during January and February 2016. Proposals for changes to the UK VAT grouping rules will emerge following publication of the consultation responses, in summer/ autumn 2016.

Those changes are likely to include:

  • allowing non-corporate bodies to join UK VAT groups
  • replacing the “control” test currently required for bodies to be sufficiently linked for VAT group purposes.

The announcement can be viewed here.