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HMRC internal manual

VAT Groups

From
HM Revenue & Customs
Updated
, see all updates

Eligibility conditions for specified bodies: specified bodies process

Step Detail
   
## Step 1 VAT group turnover is £10 million or less each year? (VGROUPS03190)

No - go to
Yes - go to
  | | ## Step 2 | Body corporate:

  • controls all other VAT group members; or 
  • is a charity or trustee of occupational pension scheme; or 
  • is under statutory control?

No - go to
Yes - go to
  | | ## Step 3 | Body corporate is:

  • partly owned by a third party (directly or indirectly); or 
  • managed by a third party (VGROUPS03210); or 
  • the sole general partner of a limited partnership? (VGROUPS03230)

Yes - go to
No - go to
  | | ## Step 4 | Body corporate / limited partnership has a business activity that involves making supplies subject to VAT to other VAT group members (other than incidental supplies (VGROUPS03300 “What are ‘incidental supplies’?” sub-heading))?

Yes - go to  

No - go to      
  ## Step 5 Some or all of the VAT on the intra-group supplies is irrecoverable? (VGROUPS03300 “What is a relevant business activity?” sub-heading)

Yes - go to  

No - go to      
  ## Step 6 Body corporate is a specified body.

Consolidation test (VGROUPS03550): specified body:

  • is consolidated in group accounts of a person controlling the VAT group; and 
  • is not consolidated in group accounts of any third party?

Yes - go to
No - go to
  | | ## Step 7 | Benefits test (VGROUPS03350): over 50% of benefits from business activity accrue to third parties?

Yes - go to
No - go to
  | | ## Step 8 | VAT GROUPING NOT ALLOWED. End of process. | | ## Step 9 | VAT GROUPING ALLOWED. End of process. |