Value Added Tax Act 1994, section 43B

Groups: applications

Part III Application of Act in particular cases

(1)This section applies where an application is made to the Commissioners for two or more [F390 persons, whoF390] are eligible [F391 by virtue of section 43AF391] , to be treated as members of a group.

(2)This section also applies where two or more [F392 personsF392] are treated as members of a group and an application is made to the Commissioners—

(a)for another [F393 person, whoF393] is eligible [F394 by virtue of section 43AF394] to be treated as a member of the group, to be treated as a member of the group,

(b)for a [F395 personF395] to cease to be treated as a member of the group,

(c)for a member to be substituted as the group’s representative member, or

(d)for the [F396 personsF396] no longer to be treated as members of a group.

(3)An application with respect to any [F397 personsF397] —

(a)must be made by one of them or by the person controlling them, and

(b)in the case of an application for the [F398 personsF398] to be treated as a group, must appoint one of them as the representative member.

(4)Where this section applies in relation to an application it shall, subject to subsection (6) below, be taken to be granted with effect from—

(a)the day on which the application is received by the Commissioners, or

(b)such earlier or later time as the Commissioners may allow.

(5)The Commissioners may refuse an application, within the period of 90 days starting with the day on which it was received by them, if it appears to them—

(a)in the case of an application such as is mentioned in subsection (1) above, that the [F399 personsF399] are not eligible [F400 by virtue of section 43AF400] to be treated as members of a group,

(b)in the case of an application such as is mentioned in subsection (2)(a) above, that the [F401 personF401] is not eligible [F402 by virtue of section 43AF402] to be treated as a member of the group, or

(c)in any case, that refusal of the application is necessary for the protection of the revenue.

(6)If the Commissioners refuse an application it shall be taken never to have been granted.F389]

Definitions used in section 43B 3

the Commissioners

“the Commissioners” means the Commissioners of Customs and Excise;

Defined in s.96(1) · see it in the full Act
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
subsection (1) above

(a) the reference in subsection (2) to “subsection (1) above” were to “subsection (1) and paragraph 24(1) of Schedule 9ZA”;

Defined in Sch.9ZA para.24(2) · see it in the full Act

(b) the reference in subsection (2A) to “subsection (1) above” were to “subsection (1) or paragraph 24(1) of Schedule 9ZA”.

Defined in Sch.9ZA para.24(2) · see it in the full Act

Cases considering section 43B 5

Barclays Services Corporation & Anor v The Commissioners For HMRC

[2026] UKUT 211 (TCC) · 8 June 2026

The Court considered the alternative power to refuse grouping where refusal is necessary for protection of the revenue. It held, on its alternative view, that HMRC could reasonably have refused this application in light of the branch’s skeletal resources and the timing-driven one-off tax benefit. (see paras [161]-[176])

Dollar Financial UK Ltd v The Commissioners for HMRC

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

Section 43B(1) is treated as applying to an application for two or more eligible bodies corporate to be treated as members of a group. It forms part of the comprehensive statutory scheme for creating VAT-group status (see paras [17], [29], [35]). Section 43B(2) is confined to the applications expressly identified in paragraphs (a) to (d). It does not provide a route for an existing member to amend retrospectively the date of its admission to a VAT group (see paras [29]-[38]). Section 43B(2)(a) concerns an application for an additional body corporate to join an existing VAT group. “Another” body corporate must not already be one of the bodies corporate treated as members of the group (see paras [29]-[33]). The judgment contrasts paragraphs (b) to (d) with paragraph (a). These provisions concern applications by entities already in the group to leave, change the representative member, or end group treatment (see para [32]). Section 43B(4) is interpreted as governing the effective date of a valid application. A grant under paragraph (a) cannot operate retrospectively; an earlier or later time requires HMRC’s allowance under paragraph (b) (see paras [34], [50]). A valid application deemed granted under section 43B(4)(a) takes effect from the date received by HMRC. It cannot retrospectively change an earlier VAT-group admission date (see paras [41], [43], [49]-[51]). Section 43B(4)(b) is the statutory mechanism by which HMRC may allow an earlier or later effective time. The provision confirms that retrospective effect is discretionary rather than automatic (see paras [34], [50]). Section 43B(5) limits HMRC’s power to refuse a valid application within 90 days to the statutory grounds. It does not enlarge the classes of application permitted by section 43B(1) and (2) (see paras [35], [43]). The judgment identifies eligibility and protection of the revenue as the statutory grounds for refusal within 90 days. Those grounds do not permit an otherwise invalid retrospective amendment application (see paras [35], [43]). Section 43B(6) is included in the statutory framework under which a refused application is treated as never having been granted (see para [17]).

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

[2025] UKSC 46 · 17 December 2025

The provision governs applications to HMRC to form, join or leave a VAT group and HMRC’s decision on those applications (see para [115]).

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

Amendments and notes

15 notes from legislation.gov.uk

Amendments

  1. F389Ss. 43A-43C inserted (27.7.1999) by 1999 c. 16, s. 16, Sch. 2 para. 2
  2. F390Words in s. 43B(1) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 7(2); S.I. 2019/1348, reg. 2
  3. F391Words in s. 43B(1) substituted (22.7.2004) by Finance Act 2004 (c. 12), s. 20(4)
  4. F392Word in s. 43B(2) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 7(3)(a); S.I. 2019/1348, reg. 2
  5. F393Words in s. 43B(2)(a) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 7(3)(b); S.I. 2019/1348, reg. 2
  6. F394Words in s. 43B(2)(a) substituted (22.7.2004) by Finance Act 2004 (c. 12), s. 20(4)
  7. F395Word in s. 43B(2)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 7(3)(c); S.I. 2019/1348, reg. 2
  8. F396Word in s. 43B(2)(d) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 7(3)(d); S.I. 2019/1348, reg. 2
  9. F397Word in s. 43B(3) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 7(4)(a); S.I. 2019/1348, reg. 2
  10. F398Word in s. 43B(3)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 7(4)(b); S.I. 2019/1348, reg. 2
  11. F399Word in s. 43B(5)(a) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 7(5)(a); S.I. 2019/1348, reg. 2
  12. F400Words in s. 43B(5)(a) substituted (22.7.2004) by Finance Act 2004 (c. 12), s. 20(4)
  13. F401Word in s. 43B(5)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 7(5)(b); S.I. 2019/1348, reg. 2
  14. F402Words in s. 43B(5)(b) substituted (22.7.2004) by Finance Act 2004 (c. 12), s. 20(4)

Modifications

  1. 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)