Value Added Tax Act 1994, section 43A

Groups: eligibility

Part III Application of Act in particular cases

(1)Two or more [F381 UK bodies corporateF381] are eligible to be treated as members of a group if F382...—

(a)one of them controls each of the others,

(b)one person (whether a body corporate or an individual) controls all of them, or

(c)two or more individuals carrying on a business in partnership control all of them.

F383(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F384(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F385 (4)An individual carrying on a business and one or more UK bodies corporate are eligible to be treated as members of a group if the individual—

(a)controls the UK body corporate or all of the UK bodies corporate, and

(b)is established, or has a fixed establishment, in the United Kingdom in relation to the business.

(5) Two or more relevant persons carrying on a business in partnership (“the partnership”) and one or more UK bodies corporate are eligible to be treated as members of a group if the partnership—

(a)controls the UK body corporate or all of the UK bodies corporate, and

(b)is established, or has a fixed establishment, in the United Kingdom in relation to the business.

(6)In this section—

(a) “UK body corporate” means a body corporate which is established or has a fixed establishment in the United Kingdom;

(b) “relevant person” means an individual, a body corporate or a Scottish partnership.

(7)Section 43AZA contains provision for determining for the purposes of this section whether a body corporate, individual or partnership controls a UK body corporate.F385]

Definitions used in section 43A 3

control

(2B) In sub-paragraph (2A) “company” and “control” have the same meaning as in section 839 of the Taxes Act.

Defined in Sch.10 para.34(2B) · see it in the full Act
business

(1) In this Act “business” includes any trade, profession or vocation.

Defined in s.94(1) · see it in the full Act
the partnership

(4) Two or more relevant persons carrying on a business in partnership (“the partnership”) control a UK body corporate if the partnership would, were it a company, be the UK body corporate's holding company.

Defined in s.43AZA(4) · see it in the full Act

Cases considering section 43A 4

Barclays Services Corporation & Anor v The Commissioners For HMRC

[2026] UKUT 211 (TCC) · 8 June 2026Interprets

The Court held that eligibility is framed by reference to each whole body corporate that is established or has a fixed establishment in the UK. Reading the provision as applying only to the extent of a UK establishment would contradict that fundamental feature and amount to amendment. (see paras [49]-[58]; [65])

Commissioners for His Majesty's Revenue and Customs v Hotel La Tour Ltd

[2025] UKSC 46 · 17 December 2025Defines

The section sets eligibility for VAT-group treatment by reference to statutory control. That test differs from the test for remunerated involvement in a subsidiary’s management (see paras [115]; [117]-[118]).

Dollar Financial UK Ltd v The Commissioners for HMRC

[2023] UKUT 256 (TCC) · 23 October 2023

The judgment applies section 43A(1) as the eligibility gateway for bodies corporate seeking VAT-group treatment, including the requirement of establishment or a fixed establishment in the United Kingdom (see paras [17], [26], [58]).

What each judgment says about section 43A is in the case-law panel in the full Act.

Amendments and notes

8 notes from legislation.gov.uk

Amendments

  1. F380Ss. 43A-43C inserted (27.7.1999) by 1999 c. 16, s. 16, Sch. 2 para. 2
  2. F381Words in s. 43A(1) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 1(2)(a); S.I. 2019/1348, reg. 2
  3. F382Words in s. 43A(1) omitted (1.11.2019) by virtue of Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 1(2)(b); S.I. 2019/1348, reg. 2
  4. F383S. 43A(2) omitted (1.11.2019) by virtue of Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 1(3); S.I. 2019/1348, reg. 2
  5. F384S. 43A(3) omitted (1.11.2019) by virtue of Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 1(3); S.I. 2019/1348, reg. 2
  6. F385Ss. 43A(4)-(7) inserted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 1(4); S.I. 2019/1348, reg. 2

Modifications

  1. C36S. 43A modified (1.8.2004) by The Value Added Tax (Groups: eligibility) Order 2004 (S.I. 2004/1931), arts. 1, 2
  2. C37Ss. 43A-43D applied (with effect in accordance with Sch. 18 para. 63 of the amending Act) by Finance Act 2016 (c. 24), Sch. 18 para. 45(3)