Gary Barnett
Gary is a senior professional support lawyer in the corporate tax group at Simmons & Simmons. Before becoming a professional support lawyer, he qualified at another major international law firm and advised on a wide range of corporate tax and VAT matters, with a particular emphasis on M&A transactions.
Gary became a professional support lawyer at Simmons & Simmons in 1996 and has since been responsible for developing the knowledge management strategy for the corporate tax group and providing support to the tax teams across Simmons & Simmons international network.
Gary has written extensively on a wide range of tax topics and has previously contributed VAT commentary for De Voil Indirect Tax Service.
Practice Area
Panel
- Contributing Author
5 Contributions by Gary Barnett
PRACTICE NOTES
Outsourcing and UK VAT: liability, VAT recovery, financial services exemptions, TOGC, VAT groups, composite supplies, staff provision, service fees, rebates and cross-border considerations
To cut expenditure and drive efficiency, many companies now sub-contract elements of their operations to external providers, commonly referred to as ‘outsourcing’. There are no dedicated statutes, tax rules included, that govern outsourcing arrangements, and the term has no precise legal definition. As a result, each outsourcing deal turns on its own facts and throws up a different combination of tax considerations, VAT among them. This Practice Note highlights the key VAT points to assess when dealing with outsourcing. For broader tax considerations, see Practice Note: Outsourcing—general tax issues. This Practice Note addresses contractual outsourcing; for joint venture outsourcing, see: Joint ventures and tax—overview...
VAT liability of outsourced supply
A central question for outsourced services is how their VAT liability is treated. As a general rule, unless the services fall within a VAT exemption, qualify for the zero rate, or sit outside the scope of VAT (for example, certain intra-group supplies), those services will attract VAT at the standard rate...
Tax
PRACTICE NOTES
UK VAT Abuse of Rights (Halifax): Post-Brexit and Assimilated Law Framework, Leading Cases and Practical Application
This Practice Note explores the EU doctrine of abuse of rights (also called abuse of law) in the VAT context, widely known as the Halifax principle. Although the doctrine can address both avoidance and fraudulent or evasive behaviour, this Note concentrates on its use in avoidance scenarios.
EU law and Brexit
VAT was historically a European tax shaped by EU law principles; therefore, any anti-avoidance measures needed to originate from, and be consistent with, those principles. Consequently, the UK’s domestic Ramsay principle has generally not been applied to VAT. (For more on Ramsay, see Practice Notes: Ramsay as a guide to statutory construction and Ramsay—reality and legal form). Following the UK’s exit from the EU, certain EU-derived rights and legislation were preserved in UK law by the European Union (Withdrawal) Act 2018 (EU(W)A 2018) as retained EU law (REUL). In addition, the Taxation (Cross-border Trade) Act 2018 (T(CT)A 2018) includes specific provisions addressing the ongoing relevance of EU law to the UK’s VAT rules...
Tax
PRACTICE NOTES
UK VAT exemption for fund management: scope of management, SIF definition, outsourcing and advice, pension schemes, and input VAT recovery, with assimilated law and HMRC updates
POTENTIAL FORTHCOMING CHANGE :
HMRC is reviewing its guidance on the VAT exemption for financial services, and updates may follow...
The VAT exemption for financial services
The UK’s VAT exemption for financial services derives from Council Directive 2006/112/EC (the VAT Directive). It has been implemented in domestic law through the Value Added Tax Act 1994 (VATA 1994), Schedule 9, Group 5, which lists a range of exempt items. This Practice Note concentrates on the aspects covering fund management services (items 9 and 10 of Group 5). The practical operation of this exemption is explored in depth in: Practical application of the . This Practice Note cites EU Directives and case law. The UK left EU membership on 31 January 2020. From that date, the UK entered an implementation period (IP) during which, for many purposes, it continued to be treated as an EU Member State and remained subject to EU law. The IP concluded at 11 pm on 31 December 2020...
Tax
PRACTICE NOTES
UK VAT on fund management: scope of Items 9 and 10, what counts as 'management', SIF status (including pensions and charities), non-UK funds, and input VAT recovery
POTENTIAL FORTHCOMING CHANGE
HMRC is in the process of reassessing its guidance on the VAT exemption for financial services. That guidance could therefore change.
The VAT exemption for financial services remains the focus of this overview and the associated practical considerations.
UK relief from VAT for financial services derives from Council Directive 2006/112/EC (the VAT Directive). It is implemented domestically by Schedule 9, group 5 to the Value Added Tax Act 1994 (VATA 1994), which lists several categories that qualify for exemption.
This Practice Note outlines key practical issues concerning the exemption from VAT for managing special investment funds, as described in items 9 and 10 of group 5.
For fuller information on the precise definitions and conditions attached to this exemption, consult Practice Note: VAT exemption for fund management.
References to EU Directives and relevant case law are included in this Practice Note.
The UK left the EU on 31 January 2020. From that date it entered an implementation period (IP), during which it continued to be treated as a Member State for many purposes and remained subject to EU law. The IP concluded at 11 pm on 31 December 2020. Timing details are noted...
Tax
PRACTICE NOTES
UK VAT: Identifying Single Composite or Multiple Supplies—Tests, Case Law, Rates, Separate Suppliers and Practical Assessment
Single composite supplies vs multiple supplies
When a supply consists of several components attracting different VAT treatments, a central issue is whether those components should be taxed separately for VAT purposes (a multiple or mixed supply) or whether the bundle should receive a single VAT treatment (a single or composite supply) and, if so, which one applies. This conundrum has repeatedly perplexed the courts, HMRC and taxpayers, and has frequently and regularly reached both the domestic courts and the EU Court of Justice. This Practice Note outlines the present position in law and administrative practice in this area today.
The UK left EU membership on 31 January 2020, and the implementation period—during which, for many purposes, the UK continued to be treated as a Member State—ended at 11pm on 31 December 2020. For guidance on the ongoing significance of EU Directives, and of the Court of Justice’s judgments, for the UK’s VAT rules, see Practice Note: Retained EU law and tax.
Why the need to distinguish between single and multiple supplies?...
Tax
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