Summary -

The UK tax authority (HM Revenue & Customs (HMRC)) is to formally consult on proposals for changes needed to the UK VAT grouping provisions. The consultation is as a result of European Court decisions which have highlighting areas where the UK rules do not conform to European law or are at odds with the VAT grouping rules in other Member States.

Preliminary discussions have taken place during February and March between HMRC and business representative bodies. Formal policy options will be set out in a formal written consultation in April or May 2016. We will issue a further alert once the policy options are published.