On 1 February 2018, HMRC wrote to the Chartered Institute of Taxation (CIOT) inviting CIOT to discuss HMRC’s “interim” views on possible changes to the VAT grouping rules. A response was requested by 16 March 2018.
This “informal” consultation will consider three options for widening the scope of the VAT grouping rules, by allowing “non-corporate” entities to join a VAT group:
• a non corporate entity (for example partnership or individual) to join a VAT group with its body corporate subsidiaries if it controls all of the members of the VAT group
• a partnership to join a VAT group where all of the partners in the partnership are bodies corporate and all of the bodies corporate are already in a VAT group
• a limited partnership to join a VAT group where the sole general partner is a body corporate and manages the limited partnership.
HMRC’s letter to CIOT can be viewed here.