VAT Groups Flashcards
Eligibility of VAT group
> 50% fixed establishment in UK
Non-corporate entity may join a VAT group if it controls all of the members in the group
Effect of a VAT group
one entity
representative member responsible for preparing and submitting returns on behalf of group
Why should a zero-rated supplier not join a VAT group
loses advantage of cash flow benefit of receiving monthly repayments
Advantages of group registration
No VAT charged on intra-group supplies
One VAT return per quarter, admin costs saved
small wholly exempt group could have input tax recovered by the de minimis partial exemption rules
Disadvantages of group registration
joint and severally liable for VAT of group
bringing in exempt or partial exempt could lead to restriction of input tax recoverability
test one simplified partial exemption
total input vat <£635PM on average and exempt supplies <50% of total supplies
Test two (if test one failed)
total input vat less input tax directly attributable to taxable supplies <635pm on average and exempt supplies <50% of total supplies
Life assurance policies - if individual is self covered in policy and not written into trust, how much is included in death estate
proceeds
Life assurance policies - if individual is someone else covered in policy, how much is included in death estate
market value
related property calculation for property other than shares
value of persons share of property divided by the donors + spouse and multiplied by whole value of property
nil rate band at death is deducted by
the chargeable gross transfers that occurred 7 yrs prior to the date of that lifetime transfer or death transfer
if donee sells shares where BPR relief was available before donor dies, is the BPR available?
No, IHT will then be payable
if shares or asset are sold at less than market value at the date of gift what is available?
a fall in value releif
