HMRC VAT Update: Compliance Guidelines for Private Equity and Venture Capital Firms

• HMRC has updated guidance for private equity businesses
• Businesses need to accurately recover input tax on share disposals
• Companies must assess if their partial exemption method is fair and reasonable
• Firms should restrict VAT recovery on costs related to non-business income
• Verification of supplies of management services is essential
• Correct application of the reverse charge mechanism is crucial for VAT compliance
• Private equity firms should review and adjust VAT practices in line with HMRC guidance

Source: crowe.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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