Currently, the UK VAT grouping legislation allows two or more bodies corporate (including LLPs) to register as a VAT group if each body is established in the UK and they are under common control. The draft Finance Bill introduces amendments which allow individuals and partnerships, subject to certain conditions, to join a VAT group. When the new rules come into force, advisers should carefully weigh up the advantages and disadvantages for their clients of VAT grouping, taking into account the commercial context and a prudent risk analysis regarding joint and several liability.
