Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Transport

HM Revenue & Customs
, see all updates

Passenger transport connected with recreational activities or airport car parking: Supplies by connected persons

If a supplier provides transport and he is either the operator of a place of entertainment or interest, or airport car park or a person connected with the operator, his transport services are standard-rated in the circumstances set out in VTRANS030100.

Person connected has the same meaning as in section 839 of the Income and Corporation Taxes Act 1988. It includes a husband and wife and their relatives, and incorporated or unincorporated companies controlled by the same person or his/her relatives. Relevant parts of the text of section 839 are reproduced here.

839 Connected persons

  1. For the purposes of, and subject to, the provisions of the Tax Acts which apply this section, any question whether a person is connected with another shall be determined in accordance with the following provisions of this section (any provision that one person is connected with another being taken to mean that they are connected with one another).
  2. A person is connected with an individual if that person is the individual’s wife or husband, or is a relative, or the wife or husband of a relative, of the individual or of the individual’s wife or husband.
  3. A person, in his capacity as trustee of a settlement, is connected with any individual who in relation to the settlement is a settlor, with any person who is connected with such an individual and with a body corporate which, under section 681 is deemed to be connected with that settlement (“settlement” and “settlor” having for the purposes of this subsection the meanings given by subsection (4) of that section).
  4. Except in relation to acquisitions or disposals of partnership assets pursuant to bona fide commercial arrangements, a person is connected with any person with whom he is in partnership, and with the wife or husband or relative of any individual with whom he is in partnership.
  5. A company is connected with another company -


  1. if the same person has control of both, or a person has control of one and persons connected with him, or he and persons connected with him, have control of the other; or
  2. if a group of two or more persons has control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom he is connected.


  1. A company is connected with another person if that person has control of it or if that person and persons connected with him together have control of it.
  2. Any two or more persons acting together to secure or exercise control of a company shall be treated in relation to that company as connected with one another and with any person acting on the directions of any of them to secure or exercise control of the company.
  3. In this section -

“company” includes any body corporate or unincorporated association, but does not include a partnership, and this section shall apply in relation to any unit trust scheme as if the scheme were a company and as if the rights of the unit holders were shares in the company;

“control” shall be construed in accordance with section 416; and

“relative” means brother, sister, ancestor or lineal descendant.