Part 2Value added tax
20Groups
1
After section 43A of the Value Added Tax Act 1994 (c. 23) (groups: eligibility) insert—
43AAPower to alter eligibility for grouping
1
The Treasury may by order provide for section 43A to have effect with specified modifications in relation to a specified class of person.
2
An order under subsection (1) may, in particular—
a
make provision by reference to generally accepted accounting practice;
b
define generally accepted accounting practice for that purpose by reference to a specified document or instrument (and may provide for the reference to be read as including a reference to any later document or instrument that amends or replaces the first);
c
adopt any statutory or other definition of generally accepted accounting practice (with or without modification);
d
make provision by reference to what would be required or permitted by generally accepted accounting practice if accounts, or accounts of a specified kind, were prepared for a person.
3
An order under subsection (1) may also, in particular, make provision by reference to—
a
the nature of a person;
b
past or intended future activities of a person;
c
the relationship between a number of persons;
d
the effect of including a person within a group or of excluding a person from a group.
4
An order under subsection (1) may—
a
make provision which applies generally or only in specified circumstances;
b
make different provision for different circumstances;
c
include supplementary, incidental, consequential or transitional provision.
2
After section 43C of that Act insert—
43DGroups: duplication
1
A body corporate may not be treated as a member of more than one group at a time.
2
A body which is a member of one group is not eligible by virtue of section 43A to be treated as a member of another group.
3
If—
a
an application under section 43B(1) would have effect from a time in accordance with section 43B(4), but
b
at that time one or more of the bodies specified in the application is a member of a group (other than that to which the application relates),
the application shall have effect from that time, but with the exclusion of the body or bodies mentioned in paragraph (b).
4
If—
a
an application under section 43B(2)(a) would have effect from a time in accordance with section 43B(4), but
b
at that time the body specified in the application is a member of a group (other than that to which the application relates),
the application shall have no effect.
5
Where a body is a subject of two or more applications under section 43B(1) or (2)(a) that have not been granted or refused, the applications shall have no effect.
3
In section 43(1) of that Act (effect of treatment as group) for “sections 43A to 43C” substitute “
sections 43A to 43D
”
.
4
In section 43B(1), (2)(a), (5)(a) and (5)(b) and section 43C(3)(b) of that Act (groups: applications for membership and termination of membership) for “under section 43A(1)” substitute “
by virtue of section 43A
”
.
5
In section 97(4) of that Act (orders, &c.: affirmative resolution) after paragraph (c) insert—
ca
an order under section 43AA(1) if as a result of the order any bodies would cease to be eligible to be treated as members of a group;