Value Added Tax Act 1994, section 46

Business carried on in divisions or by unincorporated bodies, personal representatives etc

Part III Application of Act in particular cases

(1)The registration under this Act of a body corporate carrying on a business in several divisions may, if the body corporate so requests and the Commissioners see fit, be in the names of those divisions.

(2)The Commissioners may by regulations make provision for determining by what persons anything required by or under this Act to be done by a person carrying on a business is to be done where a business is carried on in partnership or by a club, association or organisation the affairs of which are managed by its members or a committee or committees of its members.

(3)F426The registration under this Act of any such club, association or organisation may be in the name of the club, association or organisation; and in determining whether goods or services are supplied to or by such a club, association or organisation ..., no account shall be taken of any change in its members.

(4)The Commissioners may by regulations make provision for persons who carry on a business of a taxable person who has died or become bankrupt or has had his estate sequestrated or has become incapacitated to be treated for a limited time as taxable persons, and for securing continuity in the application of this Act in cases where persons are so treated.

(5)In relation to a company which is a taxable person, the reference in subsection (4) above to the taxable person having become bankrupt or having had his estate sequestrated or having become incapacitated shall be construed as a reference to its being in liquidation or receivership or [F427administrationF427] .

F428(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definitions used in section 46 6

business

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

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

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

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

“regulations” means regulations made by the Commissioners under this Act;

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

(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act ).

Defined in Sch.7A para.A1 · see it in the full Act

(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act ).

Defined in Sch.8 para.3 · see it in the full Act
taxable person

“taxable person” means a person who is a taxable person under section 3;

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

(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

Cases considering section 46 5

Commissioners of Customs & Excise v University of Leicester Students Union

[2001] EWCA Civ 1972 · 21 December 2001Disapplies

The court held that the provision concerning registration of divisions of a body corporate did not apply because the Students Union was not a division of the University but a separate entity. (see Peter Gibson LJ’s discussion of s. 46(1)) The provision was noted as permitting registration in the name of a club, association or organisation whose affairs are managed by its members. It did not establish that the Union was part of the University. (see factual and statutory background)

Eastbourne Town Radio Cars Association v. Commissioners of Customs & Excise

[2001] UKHL 19 · 4 April 2001

The power to regulate how statutory requirements were performed where a business was conducted by a member-managed association formed part of the statutory context recognising associations for VAT purposes (see paras [5]; [18]).

Midlands Co-Operative Society Ltd v HM Revenue & Customs

[2008] EWCA Civ 305 · 9 April 2008

The provision was provisionally identified as the enabling power for regulations concerning continuity after death, bankruptcy or incapacity. It did not support an implication that repayment claims were otherwise non-assignable. (see para [22])

What each judgment says about section 46 is in the case-law panel in the full Act.

Amendments and notes

3 notes from legislation.gov.uk

Amendments

  1. F426Words in s. 46(3) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 49(2) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  2. F427Word in s. 46(5) substituted (15.9.2003) by Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 1(1), Sch. para. 25 (with art. 6)
  3. F428S. 46(6) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 49(3) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.