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View the related checklists about Exempt supply

Key tax considerations for a UK corporate borrower—checklist

Key tax considerations for a UK corporate borrower—checklist This Checklist details the key direct and indirect tax issues that a corporate borrower within the charge to UK corporation tax (a UK corporate borrower) should consider both before entering into a loan and throughout the term of a loan. It is intended to be used as a Checklist for a tax adviser of a UK corporate borrower and includes a brief description of the relevant tax issues and provides space for the tax adviser to make notes. This Checklist assumes that: • the borrower is a company within the charge to UK corporation tax in respect of the loan, ie it is either a UK tax resident company or a non-UK tax resident company for which the loan is attributable to its UK permanent establishment (a UK PE) or attributable to the non-UK resident company's trade of dealing in or developing UK land, and • the borrower and the lender are unconnected parties acting at arm's length It applies both to...

View the related practice notes about Exempt supply

Exemptions from VAT

VAT is chargeable on supplies of goods and services made in the UK by a taxable person in the course of a business, unless those supplies are exempt (or zero-rated, for which, see Practice Note: VAT—zero-rated and reduced rate supplies).VAT exemption has three main consequences:•the supplier is not required to charge VAT•the value of the supply is not taken into account when deciding whether the supplier must register for VAT, and•the supplier cannot recover any input tax attributable to its exempt supplies—for a business that makes exempt supplies, input tax is therefore an absolute (and not just a timing) costFor an explanation of the rules on recovery of input tax, see Practice Note: When can a person recover VAT?The Value Added Tax Act 1994 (VATA 1994) lists 16 categories of exempt supplies, referred to as groups. These were derived from EU Council Directive 2006/112/EC (the VAT Directive) or its predecessors, but there can be important differences between the UK legislation and the Directive. In cases of doubt, the UK courts...

VAT—partial exemption

Businesses are partially exempt for VAT purposes if they make both taxable and exempt supplies. For a description of the types of supplies that are exempt from VAT, see Practice Note: Exemptions from VAT.This Practice Note explains:•when a partially exempt business can recover its input tax•the standard method of calculating the input tax a partially exempt business can recover•the de minimis rules for recovering input tax•how a business carries out an annual adjustment•the standard method override•an overview of special methods of calculating the input tax a partially exempt business can recover•the special method override•the impact of non-business activities on a business's partial exemption position, and•the application of the partial exemption rules to VAT groupsFor details of the recovery of VAT paid on professional fees (of accountants, lawyers and other advisers) incurred on business sales and acquisitions, share sales and acquisitions, corporate restructurings, and share issues, see Practice Note: VAT recovery on corporate transactions.This Practice Note includes references to EU case law. The UK ceased to be an EU Member State...

View the related q&as about Exempt supply

Is an option to tax effective before it has been accepted by HMRC?

Is an option to tax effective before it has been accepted by HMRC? An option to tax takes effect from the date on which it is exercised, or any later date specified in the option (paragraph 19(1) of Schedule 10, Part 1 of the Value Added Tax Act 1994 (VATA 1994)). The exercise of the option is simply making the decision to opt. There is no formal process for this, although it may be advisable to have a written record. The option must be notified to HMRC within 30 days, but notification is a separate step (see HMRC’s VAT Land and Property Manual, VATLP22360). It is the exercise of the option, and not its notification, that determines the date on which the option takes effect. HMRC is not under a legal obligation to acknowledge that it has received a notification, although in practice it does

Is UK VAT chargeable on a French company providing a downloadable apps service to a UK company?

Is UK VAT chargeable on a French company providing a downloadable apps service to a UK company? Fact pattern In order to determine whether UK VAT is chargeable the full facts and details of the services in question must be established. For the purpose of this Q and A, the fact pattern is as follows: • the UK company is a taxable person • both companies 'belong' to their respective countries for VAT purposes (for more information, see Practice Note: VAT place of supply rules—where is a supply made?), and • the downloadable apps service is 'used and enjoyed' in the UK. Does UK VAT apply? A transaction must have five elements for UK VAT to be chargeable. It must: • be a supply of goods or services • be a taxable supply • take place in the UK • be made my a taxable person, and • be made in the course of furtherance of any business carried on by...

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Tax weekly highlights—13 June 2024

This week's edition of Tax weekly highlights includes: (1) the Court of Appeal in JTI Acquisition upholding the decision of the Upper Tribunal (UT) that all the debits were disallowed, (2) News Analyses on the UTl decision in Burlington on the anti-abuse provision in the UK-Ireland double tax treaty, (3) News Analysis of the Court of Appeal decision in Prudential on the VAT grouping and time of supply rules, and (4) news on the tax aspects of the party manifestos being published ahead of General Election 2024.

UT holds healthcare service provided in prisons was a single exempt supply for VAT purposes (Spectrum Community Healthcare CIC v HMRC)

Tax Analysis: In Spectrum Community Healthcare CIC, the Upper Tribunal (UT) upheld the First-tier Tax Tribunal’s (FTT) decision that the taxpayer's supplies of various healthcare services to prisoners in England were one single composite supply that was exempt from VAT.