On 1 December, the government published a summary of the responses received in relation to its VAT grouping consultation launched last December.

The government's response to the paper makes clear that it would not broaden the VAT grouping rules where this would result in a loss of revenue for HMRC and may consult further on this topic and that any future expansion of these rules would require robust anti-avoidance measures, although it may consult further about certain aspects of the rules. In response to a number of concerns that were raised about the application of VAT grouping rules to partnerships, the government has committed to clarify the position through improved guidance and a policy paper.