VAT group update
UK VAT legislation allows for bodies corporate to form a VAT group registration which is treated as a single taxable person for the purposes of VAT.
The Court of Justice of the European Union (CJEU) decision in the case of Larentia + Minerva held that it was not possible to restrict grouping solely to corporate bodies and, following this case the UK legislation has been amended. The First-tier Tax Tribunal has now held in the case of Baillie Gifford & Co that under the old legislation a partnership could join a VAT group.
Whilst the decision may have limited impact because of the recent changes to the UK VAT legislation the case does still set out a useful summary of the circumstances of when UK legislation can be set aside to reflect the overarching EU provisions and the limits on what is referred to as a conforming construction to interpretation of the law.