Section 33 bodies: registration and accounting: group VAT registration
It is unusual for section 33 bodies (including local authorities and their joint boards or committees) to meet the criteria for a group VAT registration. For more information about this see Notice 700/2’Group and divisional registration’ (external users can find the notice at https://www.gov.uk/government/publications/vat-notice-7002-group-and-divisional-registration). However, if exceptionally the requirements for group treatment are met, then claims for non-business activities are restricted to those undertaken by the section 33 body itself and not the group as a whole.
Group registrations in these circumstances are not eligible for the special treatment provided by section 33(2) for VAT on purchases for exempt activities (see VATGPB4510). The group as a whole is subject to the normal partial exemption rules - see Notice 706 ’Partial exemption’
(external users can find the notice at https://www.gov.uk/government/publications/vat-notice-706-partial-exemption).