Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Shall we split?

08 October 2013 / Neil Warren
Issue: 4423 / Categories: Comment & Analysis , VAT

Situations in which business splitting can avoid an output tax problem or liability


  • Remember that it is the person that is registered for VAT and not the business.
  • Secondary sources of income from economic activities must be taken into account in calculating turnover.
  • Property income can cause unexpected problems.
  • In two recent cases the tribunal has held that the business ownership was different from that previously assumed to be the case by HMRC.
  • Advisers should ensure that the business format is absolutely clear from inception.

A major challenge in the business world is to think about the VAT implications of a transaction or deal before it takes place – or before a new venture actually starts.

There are many tribunal cases where an accountant or taxpayer is frantically backpedalling as if they were a Tour de France cyclist who has taken...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon