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.