Entries by SOC VAT Consultants

VAT deduction by holding companies

HMRC have finally published updated guidance on recovery of VAT by holding companies. The update had been expected to take the form of a Brief which would be published on Gov.uk but instead HMRC have updated the VAT manuals (also on Gov.uk) instead. Following the CJEU decision in the joint cases Larentia +Minerva, HMRC has been reviewing […]

Revised VAT Notice 701/30 – Education

HMRC have issued a revised VAT Notice 701/30: education and vocational training (26 April 2017) which explains the VAT treatment of education, research, training, connected goods and services, and examination services. The notice has been updated to explain the treatment of funds taken from the new apprenticeship service account to pay external providers for apprenticeship […]

VAT deduction on works carried out under planning gain agreements

The Advocate General (AG) opinion in the Bulgarian case of Iberdrola Inmobiliaria Real Estate Investments (“Iberdrola”) has called into question the UK’s treatment of VAT incurred on works under planning gain agreements. It has also led to some contrasts and questioning on effect of the Sveda case. Iberdrola constructed a holiday village from which it intended […]

Arts Council information on museums and galleries tax relief

In Budget 2016 the Government announced that it would introduce a new tax relief for museums and galleries to support them to develop new exhibitions and to display their collections to a wider audience. The draft legislation was published in clause 22 of the draft Finance Bill but due to the forthcoming election it was removed from […]

Making Tax Digital – will you be ready?

HMRC issued six Making Tax Digital consultations in August 2016 which outlined its plans to modernise the tax system. The main proposal under consultation was the need for over 5 million businesses with turnover over £10,000 and those receiving rental income from properties, to submit quarterly updates of their business activity to HMRC digitally. The […]

Spring Budget 2017 – VAT Changes

VAT registration and deregistration thresholds The VAT registration and deregistration thresholds will increase in line with inflation as follows: the turnover threshold which determines whether a person must be registered for VAT, will be increased from £83,000 to £85,000 the turnover threshold which determines whether a person may apply for deregistration will be increased from […]

EU Judgment: Member States can decide which supplies of cultural services may be exempt from VAT

On 15 February 2017, the Court of Justice of the European Union (CJEU) released its decision in the British Film Institute’s (BFI) UK VAT case concerning HMRC’s decision to refuse BFI’s claim for overpaid VAT in the period 1990 to 1996 on the sale of tickets for admission to screenings of films. The First-Tier Tribunal […]