In this edition of the VAT Update from Tax Essentials for Advisors, Edd Thompson looks at the latest VAT developments, policy changes and practical issues for businesses and tax professionals.
The update covers the new temporary zero rate for domestic electricity, including how it applies across England, Wales and Scotland and the treatment of billing periods that straddle the 1 October start date.
Ed also examines HMRC’s revised approach to overseas VAT refund claims for corporate groups, including which group member can make a claim and whether previously rejected claims could potentially be revisited.
This edition also considers an EU case involving transfers of a going concern (TOGC) and a family business, exploring why the transfer of two 50% shares of a business did not meet the TOGC conditions.
Finally, the tax tip highlights the VAT pitfalls of TOGCs involving land and property, including the option to tax, key notification deadlines and the potential VAT and SDLT consequences if the necessary conditions are not met.
Watch the full VAT update for the key developments and practical points to consider.
