UUÂãÁÄÖ±²¥

This guidance note examines how to identify if there is a ‘direct and immediate’ link between VAT on costs incurred by a holding company and its taxable business activities.

It is common for VAT to be incurred on a variety of costs associated with acquiring, holding or disposing of companies. However, VAT can only be recovered by a holding company where it has a direct and immediate link to the holding company’s taxable business activities.

For an overview of VAT and holding companies generally, see the Holding companies ― overview guidance note.