VGROUPS03750 | Eligibility conditions for specified bodies: specified bodies process

Step 1

VAT group turnover is £10 million or less each year? (VGROUPS03190)

• No - go to Step 2

• Yes - go to Step 9

Step 2

Body corporate:

• controls all other VAT group members; or

• is a charity or trustee of occupational pension scheme; or

• is under statutory control?

  • No - go to Step 3

  • Yes - go to Step 9

Step 3

Body corporate is:

• partly owned by a third party (directly or indirectly); or

• managed by a third party (VGROUPS03210); or

• the sole general partner of a limited partnership? (VGROUPS03230)

  • Yes - go to Step 4

  • No - go to Step 9

Step 4

Body corporate / limited partnership has a business activity that involves making supplies subject to VAT to other VAT group members (other than incidental supplies (VGROUPS03300 “What are ‘incidental supplies’?” sub-heading))?

• Yes - go to Step 5

• No - go to Step 9

Step 5

Some or all of the VAT on the intra-group supplies is irrecoverable? (VGROUPS03300 “What is a relevant business activity?” sub-heading)

• Yes - go to Step 6

• No - go to Step 9

Step 6

Body corporate is a specified body.

Consolidation test (VGROUPS03550): specified body:

• is consolidated in group accounts of a person controlling the VAT group; and

• is not consolidated in group accounts of any third party?

  • Yes - go to Step 7

  • No - go to Step 8

Step 7

Benefits test (VGROUPS03350): over 50% of benefits from business activity accrue to third parties?

• Yes - go to Step 8

• No - go to Step 9

Step 8

VAT GROUPING NOT ALLOWED. End of process.

Step 9

VAT GROUPING ALLOWED. End of process.