VAT Property Solutions
Note: 45
Ceasing to be a relevant associate - You cease to be a relevant associate in one of three ways: 1) by meeting the basic conditions (this is automatic); 2) by meeting the specified conditions and notifying HMRC by Form 6B; 3) by obtaining permission. 1) You are no longer in the VAT group; AND you do not hold any interest in the opted property and are not owed any payment for disposal of such an interest; AND you are not connected with any person who is the opter or relevant associate and holds an interest in the land. 2) the body corporate ceases to be a member of the VAT group; it has held any relevant interest in the building or land acquired whilst a member of the VAT group for at least 20 years and has been treated as a relevant associate of the opter for a period of at least 20 years; the land or building must not be subject to Capital Goods Scheme adjustments; within the previous 10 years the relevant associate or a connected person must not have made a supply of a relevant interest for a supply below open market value or arising from a relevant grant; there is no supply of goods or services made for consideration to the body corporate or a connected person which will be attributable in any way to a supply of the land or buildings in more than 12 months. Use Form 6B to notify HMRC. 3) If you do not meet the conditions of 2) above, you may still apply for permission to cease to be a relevant associate, however, you must meet the first two conditions (ie grouping and the 20 year test). Use Form 6B to notify HMRC. This is complicated! Consult 4 Eyes Ltd if this is relevant.
Contact: info@4eyesltd.co.uk Telephone: Phillip Henwood - 0044 (0)7793 707 839
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