HMRC have issued a guidance note seeking views on the best legislative approach to giving effect to the above concession.

The technical note concerns legislating for the above concession which allows VAT groups to value a statutory intra-group charge in a fair way. Views are being sought on the best legislative approach to give effect to the concession together with comments on any potential further issues and the need for transitional arrangements.

Partly exempt VAT groups that buy in services via group members with overseas premises are those likely to be affected. Responses to the technical note are requested by 3 August 2011.

Further information is available at http://www.hmrc.gov.uk/budget-updates/march2011/esc3-2-2.pdf