VGROUPS02170 | Eligibility for VAT group treatment: control conditions: general

The control conditions for group treatment are set out in the VAT Act 1994, section 43A. Group treatment may only be allowed if all the prospective members of the group are controlled by the same person or group of persons (whether legal or natural).

The control, which must be exercised in order to fulfil this condition, is that set out in the Companies Act 2006, section 1159 and Schedule 6.

The person controlling the group may be a legal person (i.e. a body corporate), a natural person (i.e. an individual) or a group of persons (e.g. a partnership (comprising natural persons, legal persons or a mixture of both), or an unincorporated association or a family).

The controlling person does not necessarily have to be a member of the group. Any type of body corporate will be eligible to join the group. However, certain non-corporate entities, which are individuals, partnerships or Scottish partnerships, may join the group but only if they control all other members of the group.