VATMARG13450 - Specific circumstances: Shares and joint purchases

There are only a few kinds of goods which can be owned jointly. The commonest examples are horses, aircraft and ships. If all the shares in a jointly owned good are simultaneously sold to one person, this is a supply of goods. On the other hand, the sale of a share in such goods is a supply of services and outside the margin scheme.

However, there may be occasions where it is clear that one person is responsible for buying and selling the goods, but he is partly financed by one or more other parties.

In such circumstances, the owner should deal with the purchase and sale within his margin scheme; and the financing arrangements (that is, the contributions received from the other parties and the distribution of proceeds to them) can be ignored for VAT purposes. Notice 718 The VAT Margin Scheme and global accounting refers.