Finance Act 2019

Prospective

Section 53

SCHEDULE 18 U.K. VAT groups: eligibility

PART 1 U.K. Eligibility of individuals and partnerships

1 (1) Section 43A of VATA 1994 (groups: eligibility) is amended as follows. U.K.

(2) In subsection (1), in the opening words—

(a) for “bodies corporate” substitute “ UK bodies corporate ”;

(b) omit “each is established or has a fixed establishment in the United Kingdom and”.

(3) Omit subsections (2) and (3).

(4) At the end insert—

“(4) An individual carrying on a business and one or more UK bodies corporate are eligible to be treated as members of a group if the individual—

(a) controls the UK body corporate or all of the UK bodies corporate, and

(b) is established, or has a fixed establishment, in the United Kingdom in relation to the business.

(5) Two or more relevant persons carrying on a business in partnership (“the partnership”) and one or more UK bodies corporate are eligible to be treated as members of a group if the partnership—

(a) controls the UK body corporate or all of the UK bodies corporate, and

(b) is established, or has a fixed establishment, in the United Kingdom in relation to the business.

(6) In this section—

(a) “UK body corporate” means a body corporate which is established or has a fixed establishment in the United Kingdom;

(b) “relevant person” means an individual, a body corporate or a Scottish partnership.

(7) Section 43AZA contains provision for determining for the purposes of this section whether a body corporate, individual or partnership controls a UK body corporate.”

2 U.K. In that Act, after section 43A insert—

“43AZA Section 43A: control test

(1) This section applies for the purposes of section 43A (and expressions used in this section have the same meaning as in that section).

(2) A body corporate (“X”) controls a UK body corporate if—

(a) X is empowered by statute to control the UK body corporate's activities, or

(b) X is the UK body corporate's holding company.

(3) An individual (“Y”) controls a UK body corporate if Y would, were Y a company, be the UK body corporate's holding company.

(4) Two or more relevant persons carrying on a business in partnership (“the partnership”) control a UK body corporate if the partnership would, were it a company, be the UK body corporate's holding company.

(5) In this section “holding company” has the meaning given by section 1159 of, and Schedule 6 to, the Companies Act 2006.”

PART 2 U.K. Consequential amendments

VATA 1994 U.K.

3 U.K. VATA 1994 is amended as follows.

4 U.K. In section 18A (fiscal warehousing), in subsection (9), for “body corporate which” substitute “ person who ”.

5 (1) Section 43 (groups of companies) is amended in accordance with this paragraph. U.K.

(2) In subsection (1), for “bodies corporate” substitute “ persons ”.

(3) In subsection (1AA)—

(a) in paragraph (c)(ii), for “body which” substitute “ person who ”;

(b) in the closing words, for “body” substitute “ person ”.

6 U.K. In section 43AA (power to alter eligibility for grouping), in subsection (1), for “section 43A” substitute “ sections 43A and 43AZA ”.

7 (1) Section 43B (groups: applications) is amended in accordance with this paragraph. U.K.

(2) In subsection (1), for “bodies corporate, which” substitute “ persons, who ”.

(3) In subsection (2)—

(a) in the opening words, for “bodies corporate” substitute “ persons ”;

(b) in paragraph (a), for “body corporate, which” substitute “ person, who ”;

(c) in paragraph (b), for “body corporate” substitute “ person ”;

(d) in paragraph (d), for “bodies corporate” substitute “ persons ”;

(4) In subsection (3)—

(a) in the opening words, for “bodies corporate” substitute “ persons ”;

(b) in paragraph (b), for “bodies” substitute “ persons ”;

(5) In subsection (5)—

(a) in paragraph (a), for “bodies corporate” substitute “ persons ”;

(b) in paragraph (b), for “body corporate” substitute “ person ”.

8 (1) Section 43C (groups: termination of membership) is amended in accordance with this paragraph. U.K.

(2) In subsection (1), for “body corporate” substitute “ person ”.

(3) In subsection (3)(a) and (b) and in the closing words, for “body” substitute “ person ”.

(4) In subsection (4)(a) and (b), for “body” substitute “ person ”.

9 (1) Section 43D (groups: duplication) is amended in accordance with this paragraph. U.K.

(2) In subsection (1), for “body corporate” substitute “ person ”.

(3) In subsection (2), for “body which” substitute “ person who ”.

(4) In subsection (3)—

(a) in paragraph (b), for “bodies” substitute “ persons ”;

(b) in the closing words, for “body or bodies” substitute “ person or persons ”.

(5) In subsection (4)(b), for “body” substitute “ person ”.

(6) In subsection (5), for “body” substitute “ person ”.

10 U.K. In section 44 (supplies to groups), in subsection (1)(a) and (b), for “body corporate” substitute “ person ”.

11 U.K. In section 53 (tour operators), in subsection (2)(d), for “body corporate” substitute “ person ”.

12 U.K. In section 97 (orders, rules and regulations), in subsection (4)(ca), for “bodies” substitute “ persons ”.

13 (1) Schedule 9 (exemptions) is amended in accordance with this paragraph. U.K.

(2) In Group 14, in Note (13)—

(a) in the opening words, for “body corporate” substitute “ person ”;

(b) in paragraph (a) for “body” substitute “ person ”;

(c) in paragraph (b)—

(i) for “body corporate, or of any other body corporate which”, substitute “ person, or of any other person who ”;

(ii) for “body, at a time when that body” substitute “ person, at a time when that person ”.

(d) in paragraph (c), for “body corporate” substitute “ person ”.

(3) In that Group, in Note (14), for “body corporate's” substitute “person's”.

14 (1) Schedule 9A (anti-avoidance provisions: groups) is amended in accordance with this paragraph. U.K.

(2) In paragraph 1(2), for “body corporate” substitute “ person ”.

(3) In paragraph 2—

(a) in sub-paragraph (1)(a), for “body corporate” substitute “ person ”;

(b) in sub-paragraph (2), for “body corporate's” substitute “person's”.

(4) In paragraph 3—

(a) in sub-paragraph (1)(a) and (b), for “body corporate” substitute “ person ”;

(b) in sub-paragraph (3), for “body corporate” (in both places) substitute “ person ”;

(c) in sub-paragraph (5), for “body corporate which” substitute “ person who ”.

(5) In paragraph 5—

(a) in sub-paragraph (1)(b)—

(i) for “body corporate which” substitute “ person who ”;

(ii) for “that person” substitute “ the person mentioned in paragraph (a) ”;

(b) in sub-paragraph (2)—

(i) for “body corporate (“the relevant body”)” substitute “ person (“the relevant person”) ”;

(ii) for “that body or to any body corporate which” substitute “ that person or to any person who ”;

(iii) for “the relevant body” substitute “ the relevant person ”.

(6) In paragraph 6—

(a) in sub-paragraph (7)(b), for “body corporate that” substitute “ person who ”;

(b) in sub-paragraph (11)(b)—

(i) for “body corporate which” substitute “ person who ”;

(ii) for “that person” substitute “ the person mentioned in paragraph (a) ”;

(c) in sub-paragraph (11)(c), for “body corporate which” substitute “ person who ”.

15 (1) Schedule 10 (buildings and land) is amended in accordance with this paragraph. U.K.

(2) In paragraph 3—

(a) in sub-paragraph (1), for “body corporate” substitute “ person ”;

(b) in sub-paragraph (2)—

(i) in the opening words (in both places) and paragraph (c), for “body corporate” substitute “ person ”;

(ii) in paragraph (c), for “that body” substitute “ that person ”;

(c) in sub-paragraph (3), for “body corporate” substitute “ person (“P”) ”;

(d) in sub-paragraph (4)—

(i) in the opening words, for “The body corporate” substitute “ P ”;

(ii) in paragraphs (a), (aa), (b) and (c), for “the body corporate” substitute “ P ”;

(e) in sub-paragraph (5)—

(i) in the opening words, for “The body corporate” substitute “ P ” and for “the body corporate” substitute “ P ”;

(ii) in the closing words, for “the body corporate” substitute “ P ”.

(3) In paragraph 4—

(a) in sub-paragraph (1), for “body corporate which” substitute “ person (“P”) who ”;

(b) in sub-paragraph (2), for “the body corporate, it” substitute “ P, P ”;

(c) in sub-paragraph (3)(b), for “the body corporate” substitute “ P ”;

(d) in sub-paragraph (3)(c)—

(i) for “the body corporate” substitute “ P ”;

(ii) for “it” substitute “ P ”;

(e) in sub-paragraph (4)(b)—

(i) for “the body corporate” substitute “ P ”;

(ii) for “it” substitute “ P ”;

(f) in sub-paragraph (5), in the opening words—

(i) for “the body corporate” substitute “ P ”;

(ii) for “it” substitute “ P ”;

(g) in sub-paragraph (6)(a)—

(i) for “the body corporate” substitute “ P ”;

(ii) for “its” substitute “P's”;

(h) in sub-paragraph (6)(b), for “the body corporate” substitute “ P ”;

(i) in sub-paragraph (7), for “the body corporate” substitute “ P ”.

(4) In paragraph 21—

(a) in sub-paragraph (1)(b)—

(i) for “body corporate” substitute “ person ”;

(ii) for “the body” substitute “ the person ”;

(b) in sub-paragraph (3)(a), for “body corporate which” substitute “ person who ”;

(c) in sub-paragraph (9)(b), for “body corporate which” substitute “ person who ”;

(d) in sub-paragraph (11)(b), for “body corporate which” substitute “ person who ”;

(e) in sub-paragraph (12), in the definition of “relevant group member”—

(i) after “any person” insert “ (“P”) ”;

(ii) for “body corporate which” substitute “ person who ”;

(iii) for “that person” substitute “ P ”.

(5) In paragraph 35(3), for “body corporate” substitute “ person ”.