PART 1 — Eligibility of individuals and partnerships
(1) Section 43A of VATA 1994 (groups: eligibility) is amended as follows.
(2) In subsection (1), in the opening words—
(a) for “bodies corporate” substitute “ UK bodies corporate ” ;
(b) omit “each is established or has a fixed establishment in the United Kingdom and”.
(3) Omit subsections (2) and (3).
(4) At the end insert—
(4) An individual carrying on a business and one or more UK bodies corporate are eligible to be treated as members of a group if the individual—
(a) controls the UK body corporate or all of the UK bodies corporate, and
(b) is established, or has a fixed establishment, in the United Kingdom in relation to the business.
(5) Two or more relevant persons carrying on a business in partnership (“ the partnership ”) and one or more UK bodies corporate are eligible to be treated as members of a group if the partnership—
(a) controls the UK body corporate or all of the UK bodies corporate, and
(b) is established, or has a fixed establishment, in the United Kingdom in relation to the business.
(6) In this section—
(a) “ UK body corporate ” means a body corporate which is established or has a fixed establishment in the United Kingdom;
(b) “ relevant person ” means an individual, a body corporate or a Scottish partnership.
(7) Section 43AZA contains provision for determining for the purposes of this section whether a body corporate, individual or partnership controls a UK body corporate.
In that Act, after section 43A insert—
Section 43A: control test
(43AZA)
(1) This section applies for the purposes of section 43A (and expressions used in this section have the same meaning as in that section).
(2) A body corporate (“X”) controls a UK body corporate if—
(a) X is empowered by statute to control the UK body corporate's activities, or
(b) X is the UK body corporate's holding company.
(3) An individual (“Y”) controls a UK body corporate if Y would, were Y a company, be the UK body corporate's holding company.
(4) Two or more relevant persons carrying on a business in partnership (“ the partnership ”) control a UK body corporate if the partnership would, were it a company, be the UK body corporate's holding company.
(5) In this section “ holding company ” has the meaning given by section 1159 of, and Schedule 6 to, the Companies Act 2006.
PART 2 — Consequential amendments
VATA 1994 is amended as follows.
In section 18A (fiscal warehousing), in subsection (9), for “body corporate which” substitute “ person who ” .
(1) Section 43 (groups of companies) is amended in accordance with this paragraph.
(2) In subsection (1), for “bodies corporate” substitute “ persons ” .
(3) In subsection (1AA)—
(a) in paragraph (c)(ii), for “body which” substitute “ person who ” ;
(b) in the closing words, for “body” substitute “ person ” .
In section 43AA (power to alter eligibility for grouping), in subsection (1), for “section 43A” substitute “ sections 43A and 43AZA ” .
(1) Section 43B (groups: applications) is amended in accordance with this paragraph.
(2) In subsection (1), for “bodies corporate, which” substitute “ persons, who ” .
(3) In subsection (2)—
(a) in the opening words, for “bodies corporate” substitute “ persons ” ;
(b) in paragraph (a), for “body corporate, which” substitute “ person, who ” ;
(c) in paragraph (b), for “body corporate” substitute “ person ” ;
(d) in paragraph (d), for “bodies corporate” substitute “ persons ” ;
(4) In subsection (3)—
(a) in the opening words, for “bodies corporate” substitute “ persons ” ;
(b) in paragraph (b), for “bodies” substitute “ persons ” ;
(5) In subsection (5)—
(a) in paragraph (a), for “bodies corporate” substitute “ persons ” ;
(b) in paragraph (b), for “body corporate” substitute “ person ” .
(1) Section 43C (groups: termination of membership) is amended in accordance with this paragraph.
(2) In subsection (1), for “body corporate” substitute “ person ” .
(3) In subsection (3)(a) and (b) and in the closing words, for “body” substitute “ person ” .
(4) In subsection (4)(a) and (b), for “body” substitute “ person ” .
(1) Section 43D (groups: duplication) is amended in accordance with this paragraph.
(2) In subsection (1), for “body corporate” substitute “ person ” .
(3) In subsection (2), for “body which” substitute “ person who ” .
(4) In subsection (3)—
(a) in paragraph (b), for “bodies” substitute “ persons ” ;
(b) in the closing words, for “body or bodies” substitute “ person or persons ” .
(5) In subsection (4)(b), for “body” substitute “ person ” .
(6) In subsection (5), for “body” substitute “ person ” .
In section 44 (supplies to groups), in subsection (1)(a) and (b), for “body corporate” substitute “ person ” .
In section 53 (tour operators), in subsection (2)(d), for “body corporate” substitute “ person ” .
In section 97 (orders, rules and regulations), in subsection (4)(ca), for “bodies” substitute “ persons ” .
(1) Schedule 9 (exemptions) is amended in accordance with this paragraph.
(2) In Group 14, in Note (13)—
(a) in the opening words, for “body corporate” substitute “ person ” ;
(b) in paragraph (a) for “body” substitute “ person ” ;
(c) in paragraph (b)—
(i) for “body corporate, or of any other body corporate which”, substitute “ person, or of any other person who ” ;
(ii) for “body, at a time when that body” substitute “ person, at a time when that person ” .
(d) in paragraph (c), for “body corporate” substitute “ person ” .
(3) In that Group, in Note (14), for “body corporate's” substitute “person's”.
(1) Schedule 9A (anti-avoidance provisions: groups) is amended in accordance with this paragraph.
(2) In paragraph 1(2), for “body corporate” substitute “ person ” .
(3) In paragraph 2—
(a) in sub-paragraph (1)(a), for “body corporate” substitute “ person ” ;
(b) in sub-paragraph (2), for “body corporate's” substitute “person's”.
(4) In paragraph 3—
(a) in sub-paragraph (1)(a) and (b), for “body corporate” substitute “ person ” ;
(b) in sub-paragraph (3), for “body corporate” (in both places) substitute “ person ” ;
(c) in sub-paragraph (5), for “body corporate which” substitute “ person who ” .
(5) In paragraph 5—
(a) in sub-paragraph (1)(b)—
(i) for “body corporate which” substitute “ person who ” ;
(ii) for “that person” substitute “ the person mentioned in paragraph (a) ” ;
(b) in sub-paragraph (2)—
(i) for “body corporate (“the relevant body”)” substitute “ person (“ the relevant person ”) ” ;
(ii) for “that body or to any body corporate which” substitute “ that person or to any person who ” ;
(iii) for “the relevant body” substitute “ the relevant person ” .
(6) In paragraph 6—
(a) in sub-paragraph (7)(b), for “body corporate that” substitute “ person who ” ;
(b) in sub-paragraph (11)(b)—
(i) for “body corporate which” substitute “ person who ” ;
(ii) for “that person” substitute “ the person mentioned in paragraph (a) ” ;
(c) in sub-paragraph (11)(c), for “body corporate which” substitute “ person who ” .
(1) Schedule 10 (buildings and land) is amended in accordance with this paragraph.
(2) In paragraph 3—
(a) in sub-paragraph (1), for “body corporate” substitute “ person ” ;
(b) in sub-paragraph (2)—
(i) in the opening words (in both places) and paragraph (c), for “body corporate” substitute “ person ” ;
(ii) in paragraph (c), for “that body” substitute “ that person ” ;
(c) in sub-paragraph (3), for “body corporate” substitute “ person (“P”) ” ;
(d) in sub-paragraph (4)—
(i) in the opening words, for “The body corporate” substitute “ P ” ;
(ii) in paragraphs (a), (aa), (b) and (c), for “the body corporate” substitute “ P ” ;
(e) in sub-paragraph (5)—
(i) in the opening words, for “The body corporate” substitute “ P ” and for “the body corporate” substitute “ P ” ;
(ii) in the closing words, for “the body corporate” substitute “ P ” .
(3) In paragraph 4—
(a) in sub-paragraph (1), for “body corporate which” substitute “ person (“P”) who ” ;
(b) in sub-paragraph (2), for “the body corporate, it” substitute “ P, P ” ;
(c) in sub-paragraph (3)(b), for “the body corporate” substitute “ P ” ;
(d) in sub-paragraph (3)(c)—
(i) for “the body corporate” substitute “ P ” ;
(ii) for “it” substitute “ P ” ;
(e) in sub-paragraph (4)(b)—
(i) for “the body corporate” substitute “ P ” ;
(ii) for “it” substitute “ P ” ;
(f) in sub-paragraph (5), in the opening words—
(i) for “the body corporate” substitute “ P ” ;
(ii) for “it” substitute “ P ” ;
(g) in sub-paragraph (6)(a)—
(i) for “the body corporate” substitute “ P ” ;
(ii) for “its” substitute “P's”;
(h) in sub-paragraph (6)(b), for “the body corporate” substitute “ P ” ;
(i) in sub-paragraph (7), for “the body corporate” substitute “ P ” .
(4) In paragraph 21—
(a) in sub-paragraph (1)(b)—
(i) for “body corporate” substitute “ person ” ;
(ii) for “the body” substitute “ the person ” ;
(b) in sub-paragraph (3)(a), for “body corporate which” substitute “ person who ” ;
(c) in sub-paragraph (9)(b), for “body corporate which” substitute “ person who ” ;
(d) in sub-paragraph (11)(b), for “body corporate which” substitute “ person who ” ;
(e) in sub-paragraph (12), in the definition of “relevant group member”—
(i) after “any person” insert “ (“P”) ” ;
(ii) for “body corporate which” substitute “ person who ” ;
(iii) for “that person” substitute “ P ” .
(5) In paragraph 35(3), for “body corporate” substitute “ person ” .
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