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1 to 10 of 18 articles
  • VAT Memo - Scope of VAT - What is a supply? - Outside the scope of VAT - 252
    Certain transactions will be outside the scope of VAT, either because they: - do not meet the criteria detailed at ¶25; or - fall within one of the following categories: - supplies that are specifically defined in the legislation as supplies of neither goods nor services (¶258); - compensation or damages (¶264); - supplies of inherently illegal products (¶266); - the loss or destruction of an asset (¶268+); - the issue of new shares by a company (¶2420+); - a business gift costing not more than £50 (¶1465+);...
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  • VAT Memo - Scope of VAT - Exempt supplies - 350
    VAT is not chargeable on exempt supplies. A person making only exempt supplies cannot register for VAT. But if a person makes both exempt and taxable supplies in the course of business: - income from the exempt supplies does not count towards the value of taxable supplies for registration threshold purposes (¶9960); and - input tax incurred in the course of making the exempt supplies is irrecoverable, subject to certain de minimis limits (¶2075+).Comment Contrast this position with zero-rated supplies, which...
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  • VAT Memo - Scope of VAT - Exempt supplies - Common exemptions - Finance - Management of special investment funds - Meaning of “management” - 378
    Exempt fund management covers the following key activities: - assessment of financial and investment risk; - making decisions regarding investments, including purchase and disposal; and - involvement in the property held by the fund. Other peripheral activities which qualify for exemption include the following (provided that they are subsumed into a single composite supply (¶310+) of fund management services): - legal and fund management accounting services; - dealing with customer queries; - value and pricing...
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  • VAT Memo - Scope of VAT - Exempt supplies - Common exemptions - Education and sporting services - Sporting and physical education services - Competition entry fees - 420
    The grant of a right to enter a competition in a sporting activity or physical recreation is exempt from VAT where: - the consideration to enter is in money and the total amount of the entry fees is put towards a prize for that competition; or - the right to enter is granted by an eligible body. If the entry fee includes the body's normal fee for admission to its grounds or facilities, that part is not exempt. If the fee is a composite supply (¶310+), it may still all be exempt but otherwise an apportionment...
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  • VAT Memo - Scope of VAT - Exempt supplies - Other exemptions - 458
    Exemption also applies to the following less common types of supply: - antiques from historic houses (¶460); - betting, gaming and lotteries (¶462+); - burial and cremation (¶468+); - postal services (¶474); and - subscriptions to public interest bodies (¶476+).
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  • VAT Memo - Input tax - Special situations - 2410
    There are special rules which apply to input tax deduction for non-taxable UK persons, and to transactions involving shares and financial supplies. In addition, various sundry items are dealt with at ¶2435+.
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  • VAT Memo - Compliance - Registration - Persons making UK supplies - Compulsory registration - Other taxable persons - 2668
    Unless meeting the criteria for exemption (¶2650+), there are two situations where a trader may be required to register because the value of taxable supplies in a given period exceeds the threshold. They are distinguished by the period under consideration, which is either: - the previous 12 months; or - the next 30 days. The threshold for registration is generally updated each year (¶9960) and registration is compulsory if the cumulative taxable supplies made by the trader in the period exceed the threshold....
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  • VAT Memo - Particular activities - Farming - 5900
    Farming activity encompasses food production (including cultivation, breeding, rearing, and keeping animals), and maintaining the land in good agricultural and environmental condition. Farmers have increasingly have sought to diversify, in both their business structures and their activities, in order to stabilise their often precarious financial situation.
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  • VAT Memo - Particular activities - Bloodstock - General principles - Types of activity - 6100
    The horse racing industry involves a wide range of activities, and several types of persons who undertake them. VAT can impinge on these activities and persons in different ways, depending on the business nature of the activity: Activity Business? VAT treatment ¶¶ Horse breeders1 Yes Normal registration ¶6110+ Trainers1 Yes Normal registration ¶6130+ Professional jockeys Yes Normal registration ¶6140+ Agents Yes Normal registration ¶6150+ Owners of horses2 No Special registration scheme ¶6160+ Other...
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  • VAT Memo - Particular activities - Bloodstock - Activities other than ownership - Interaction with ownership - 6105
    Persons involved in the horse racing industry can register for VAT and reclaim input tax in the usual way, provided that a business activity is being undertaken. If the person also owns racehorses, this will be part of the overall business activity, provided that the racing takes place for publicity or some other commercial purpose. Any prize money received will be outside the scope of VAT (¶6134). If racing is to be covered by an existing VAT registration, a D form (¶6202) should be submitted to HMRC. Activity...
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