The Impact of Insolvency on VAT Groups: Updated Guidance and Clarity from HMRC

• HMRC has updated its guidance on the effect of insolvency on VAT groups.
• If the holding company becomes insolvent, the VAT group remains intact unless the holding company no longer controls the group.
• If a group member (other than the holding company) becomes insolvent, the assumption of control by the insolvency practitioner does not necessarily change the VAT grouping.
• If the control criteria cease to be met, a new solvent representative member needs to be appointed for the VAT group.

Source: tax.weil.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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