8 June 2026 - UTT upholds HMRC's refusal to admit Barclays Services Corporation to the BBPLC VAT Group.

 

(Upper Tribunal Tax and Chancery Decision of MR JUSTICE RAJAH and JUDGE THOMAS SCOTT on 08 June 2026)

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• Dismissed on the grounds that it did not meet the necessary eligibility requirements for VAT grouping at the date of the application in terms of having sufficient human and technical resources in the UK to have a Fixed Establishment.

• UTT - disagreed with FTT conclusion on Protection of Revenue and would have concluded the opposite

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Link to UTT ruling below:

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(1) BARCLAYS SERVICES CORPORATION (2) ...

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In the FTT judgement, two key points were addressed:
 

• Whether BSC UK branch had a Fixed Establishment in the UK

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• Whether HMRC had sufficient grounds for refusing the application for BSC UK Branch to join the VAT Group for the protection of the revenue.
   

Barclays appeal against the rejection of its application for a UK branch of BSC US to join the VAT Group was dismissed on the grounds that it did not meet the necessary eligibility requirements for VAT grouping at the date of the application in terms of having sufficient human and technical resources in the UK to have a Fixed Establishment.

The FTT however dismissed the second point on "protection of the revenue" on the basis that, had BSC UK had the necessary human and technical resources to be considered as having a fixed establishment in the UK as at the date of the application to join the VAT group, the VAT savings on its admission would be those that fell within the normal consequences of VAT grouping.

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See link to full FTT judgement below:

Barclays Service Corporation & Anor v The Commissioners for HMRC - Find case law - The National Archives