VAT GUIDE FOR CLUBS CONTENTS PAGE. 1. Introduction. 2. How VAT works. 3. VAT registration and deregistration VAT on income 3

Transcription

1 VAT GUIDE FOR CLUBS This guide to value added tax has been prepared by the Royal Yachting Association for its member clubs. It is for guidance only and should not be regarded as a substitute for obtaining professional advice from a VAT specialist. This guide represents the RYA's interpretation of the relevant law and practice and the RYA takes all reasonable care to ensure that the information contained in it is accurate. The RYA cannot accept responsibility for any errors or omissions contained in the guide or for any loss caused or sustained by any person relying on it. CONTENTS 1. Introduction 2. How VAT works PAGE VAT registration and deregistration 2 4. VAT on income 3 5. Exempt sporting services 4 6. Recovering VAT on expenditure 5 7. Facility improvement and VAT 5 8. Special issues for clubs 6 9. Making the most of VAT Charitable clubs Compliance and record keeping Summary 9 Annex- VAT on different types of income 10 Page 1 of 13

2 1. Introduction Clubs of all sizes will encounter VAT in their everyday activities whether registered for VAT purposes or not. It is important that club treasurers are fully aware of the potential costs which VAT can create and arrange the way the club works to minimise the impact in terms of both cost and time spent dealing with it. Failure to deal with VAT adequately can create costs not only of additional VAT but can also give rise to fines and interest charges for failure to comply on a timely basis. Normally it will be the Treasurer s responsibility to ensure VAT is dealt with appropriately. In addition to managing VAT on the club's ongoing activities specific attention is required to one off events such as fund raising or facility improvement projects where special VAT treatment may apply. Failure to plan for these can expose the club to additional costs and result in lost opportunities. This guide is intended to provide clubs with general guidance on the basic principles of VAT, a starting place for ensuring that VAT is dealt with efficiently. Often it will be advisable to take professional advice to deal with what is a complex tax. 2. How VAT works VAT is charged on the supply of goods and services (if they are taxable supplies) made in the UK by a taxable person in the course or furtherance of a business. It is also charged on the importation of goods into the UK and on receipt of certain services from overseas. A taxable person is generally one which is registered for VAT because its taxable supplies exceed the annual registration limit. This VAT on taxable supplies is known as "Output tax. A taxable person has to pay Output tax to HM Revenue & Customs (HMRC - who administer VAT) but is generally allowed to set off against it any VAT it has paid on purchases of goods and services (and on imports) which is known as "Input" tax. Clubs, whether incorporated as a company or unincorporated association, may find that they are liable to VAT and have to register. Its impact will be felt most by larger clubs with higher levels of non-sporting income but smaller clubs with turnover over the registration threshold will still have to register. Since the supply of sporting services by non-profit making clubs to its members (and to nonmembers from 1st January 2015) is generally exempt some smaller clubs may not need to register and, if they do not register voluntarily, they will be unable to recover any VAT which they are charged on their purchases of goods and services. VAT recovery on purchases may also be restricted for registered clubs because of their exempt sporting services. 3. VAT registration and deregistration Taxable supplies can be charged at the standard, reduced or zero rates. The value of all of these supplies must be aggregated to determine whether the club has exceeded the registration limit and is therefore required to register with HMRC for VAT purposes. Certain other supplies are exempt for VAT or outside the scope and can be ignored for this purpose. Page 2 of 13

3 A club is regarded as carrying on a business for VAT purposes by HMRC even if it does not set out to make a profit in the commercial sense and is not organised as a company as many businesses are. If its taxable supplies in the preceding 12 months or expected supplies in the next 30 days exceed 82,000 for 2015/16 then it must register. This should be done by using HMRC's online registration service There are anti-avoidance provisions to prevent clubs artificially separating their activities into smaller parts to avoid registration. Clubs may register voluntarily if their taxable supplies do not exceed the registration limits. This may be worthwhile if VAT charged on the club's expenditure is significant e.g. it embarks on a large facility improvement project. In this case VAT on that expenditure may be recovered (subject to the special rules for clubs which provide exempt sporting servicespartial exemption -see 5 and 6 below). VAT will have to be charged on standard rated and reduced rate supplies and the club's pricing policy will need to take this into account to ensure that it is not out of pocket. If a club's taxable income falls below a specified limit ( 80,000pa for 2015/16) it can deregister for VAT. However in this event a cost may arise on deregistration as the club may have to account to HMRC for VAT on certain business assets held at that time. 4. VAT on income Each transaction entered into by a club needs to be examined and the correct treatment applied. All types of income can be categorised as follows- a. Taxable income is all subject to VAT but at different rates (current rates shown) - Standard rate (20%) Reduced rate (5%) Zero rate (0%) Input tax incurred on expenditure which generates taxable income is fully recoverable. b. Exempt income - this applies to certain types of income the most common of which is sporting services. c. Outside the scope income- certain forms of income are entirely outside the scope of VAT so that no VAT is chargeable. Section 8 describes the treatment of some of the more important vatable supplies and the Annex provides guidance on further types of supplies typically generated by a club. Page 3 of 13

4 5. Exempt sporting services The most important exemption for clubs applies to the provisions for non-profit making organisations making supplies closely linked with, and essential to, sport or physical education. From 1st January 2015 this exemption was extended to supplies to nonmembers as well as members of eligible members clubs. This extension was as a result of the Bridport Golf Club case following which it may be possible to make claims for overpaid VAT incorrectly charged on supplies to non-members. However great care is required before making such a claim (see HMRC VAT Information Sheet 01/15 Supplies of sporting services to non-members) In order to be eligible for the sporting services exemption a club must - be non- profit making have restrictions on the distribution of profits in its constitution not be subject to commercial influence or be part of a wider commercial undertaking use all of its surpluses from sporting activities to maintain or improve club facilities. If eligible the club's charges for the following supplies should qualify for exemption as being supplies closely linked with, and essential to, sport or physical recreation- playing, competing, refereeing, umpiring, judging, coaching or training (but not spectating or administrating) use of changing rooms, showers and sporting equipment together with storage of equipment essential to the sporting activity fees charged for the use of playing facilities mooring, hangarage and use of workshop facilities (but not the use of parts, or the services of an engineer). There is also special exemption from VAT on subscriptions, joining fees and entry fees for regattas. These sporting supplies exemption rules can be found in HMRC VAT Notice 701/45 on HMRC's website. 6. Recovering VAT on expenditure If a club is VAT registered and only has income taxable at either the standard, reduced or zero rates then the Input tax it pays on its expenditure is fully recoverable by offset against its Output tax unless it is specifically blocked. Examples of this blocked VAT are on the purchase of a motor car (unless used wholly for business purposes) business entertainment where no onward charge is made (hotel expenses and postmatch refreshments for a visiting team met by the club under a reciprocal arrangement are however allowed) Page 4 of 13

5 business gifts costing more than 50. It is a common misconception that clubs which are registered can recover all of their Input tax; this is rarely the case because VAT on costs incurred directly on activities which produce exempt income (known as exempt Input tax) is not recoverable e.g. VAT on the cost of equipment used only for recreational boating may not be recoverable at all. This is in contrast to costs incurred on taxable activities e.g. bar stocks of beer etc. which are recoverable in full. The club will be a "partially exempt" business. Frequently Input tax incurred on expenditure will relate to both to exempt and taxable income (e.g. on telephone bills and other club running costs). The VAT on this will need to be apportioned and treated as partly exempt input tax and partly as recoverable input tax is. The standard method of apportionment of this mixed use" input tax is based on a calculation of taxable income as a percentage of the total of taxable income and exempt income. If this does not give a fair result it is possible for the club to apply to use another method to establish the recoverable percentage based on, say, purchases, staff time or floor space used for taxable and exempt activities respectively. HMRC approval is required to use an alternative method. Under the de minimis rules, if exempt input tax is not more than; 625 per month on average, and half of the total input tax for the period, the club can reclaim its input tax in full. The total value of exempt input tax is that which is attributable to exempt supplies plus the proportion of mixed use input tax attributable to exempt supplies as calculated above. It will be clear that VAT recovery for clubs is not straightforward and it may well be worth taking specialist advice to get the club's partial exemption calculations right at the outset. In the event that a club incurs expenditure related to a non-business activity no VAT can be recovered since unlike the partial exemption calculations there is no de minimis limit for recovery of that VAT. A non- business activity can arise where the club carries on an activity without making any supplies for a consideration and where there is no future intention of doing so e.g. running an academy for young people to learn to sail without charge. 7. Facility improvement and VAT VAT can create financial havoc where a club embarks on a facility development project since the potential VAT cost on the improvement expenditure is frequently overlooked. The starting place is the VAT which will be incurred on the capital expenditure; there are no reliefs for a typical club and it will incur VAT on the cost. In very limited circumstances VAT may be charged at the zero rate if the club is a charity for tax purposes (see Section 10 below) but HMRC are likely to resist this treatment. Indeed HMRC are likely to argue that no VAT is recoverable if the facilities are only used for recreational boating and generate only VAT exempt income. Page 5 of 13

6 The normal general principles of attribution apply to the expenditure incurred; thus if the project includes spending on a new bar or kitchen then the VAT attributable to that element of the cost will be fully recoverable since the expenditure results in income which will be fully taxable. If the club is not registered, however and will not have to register after the project is completed then none of the VAT which the club incurs will be recoverable. In practice clubs embarking on major facility improvement projects may be VAT registered and the projects will comprise both exempt sporting and taxable social elements. It will therefore be important to plan and document these with a view to maximising VAT recovery. There is another VAT rule, the Capital Goods Scheme (CGS), if the project involves spending of over 250,000 on construction costs e.g. on a new clubhouse (or perhaps less likely 50,000 on computer systems). Even where clubs have been within the de minimis limit, the VAT incurred on the expenditure at this level is likely to put them over the limit and create VAT costs. Under CGS the VAT recovered under the club's partial exemption method in year one is adjusted over the following 10 year period in the case of buildings. If in subsequent years the VAT recovery rate decreases the club will have to repay additional VAT. If it increases there will be further VAT to reclaim. By keeping taxable income high improved VAT recovery can be obtained under the CGS even though more Output VAT would be due. Particular attention should be paid to the partial exemption method employed. Agreeing a special method with HMRC and taking professional advice in advance of the project may be of significant help. 8. Special issues for clubs If the club requires members to make a loan, pay a levy or purchase shares or debentures as a condition of membership members will be paying consideration for the supply of the benefits of membership and VAT will have to be considered. Leases of land are generally exempt from VAT; moorings of houseboats may also qualify for exemption (see HMRC VAT Notice 701/20 Caravans and Houseboats). Parking, if ancillary to the overall purpose of the lease of the mooring, follows the treatment of the main part. A club can opt to tax land including buildings (see paragraph 17 of the Annex). This will mean that any rentals will be standard rated. This is a complex area of VAT law and clubs should consider taking specialist professional advice before electing. Generally VAT at the standard rate will be charged on power, utilities and supplies of fuel. The reduced rate only applies to residential and charitable use (see Section 10 below) although the reduced rate of 5% may apply to certain houseboats used for permanent habitation. A freely given donation for which nothing is provided in return is non-business income and outside of the scope of VAT. Similarly if a club receives grant funding to support its activities again if nothing is provided in return VAT will not apply. However great care is needed where the grant funder requires the club to enter into a detailed grant funding agreement requiring the club to provide goods or services since VAT is likely to be Page 6 of 13

7 chargeable at the standard rate. Clubs should take care with such agreements since the cost of the VAT payable to HMRC may fall on the club rather than the grant funder. Care is required in dealing with business entertainment and corporate hospitality because of the general disallowance of input tax on entertainment expenditure. Business entertainment includes the free provision of food and drink, hotel accommodation and entry to events to people other than employees. An exception is where this is provided to a visiting team or under the terms of a competition. VAT on the costs of a corporate hospitality package under which the club receives fees subject to VAT is not business entertainment for the club (although it is likely to be for the purchaser of the hospitality package). Clubs may incur overseas VAT on its costs e.g. on meals and accommodation as a result of an overseas competition. Where the VAT is incurred in another EU country it may be possible for clubs to recover it under a special EU refund procedure. A club may from time to time supply goods and services free of charge" under a value in kind agreement i.e. where it receives goods and services in return rather than payment. Under such arrangements for VAT purposes both parties are treated as making supplies and where they are taxable, VAT must be accounted for on the full value of the supplies. Both the club and the other organisation must issue "VAT only invoices for the value of their respective supplies. A common example would be where a sponsor provides equipment to the club rather than cash for the sponsorship which it provides. Clubs should refer to the Annex for the treatment of other types of supply generated by a typical recreational boating club. 9. Making the most out of VAT Some ways to minimise the VAT burden are- ensuring that the VAT rate applied to income is correct and taking full advantage of exemptions subject to any costs arising from partial exemption. if not already registered consider voluntary registration to recover VAT on substantial expenditure on VAT generating activities e.g. putting in a new bar. avoiding the worst of partial exemption by negotiating the best partial exemption VAT recovery method or if possible reducing exempt input tax below the de minimis limit of 625 per month. in the case of sponsorship carefully analyse what is provided to exempt sponsors which cannot recover VAT, (such as banks, insurance companies or building societies), since if VAT can be avoided on part of the consideration that might mean more cash for the club. ensure that VAT is charged when it is due since otherwise the club will be legally responsible for paying it and may end up with less than the agreed price. timing of invoices- the VAT on an invoice issued at the beginning of a VAT quarter will stay in the club's bank account longer than one issued at the end. Page 7 of 13

8 10. Charitable clubs There are special reliefs for both taxable supplies to, and by, charitable clubs which can provide valuable cash savings. It is possible for amateur clubs which are open to the community to register as charities with the Charity Commission and with HMRC to take advantage of these reliefs. Unfortunately community amateur sports clubs (CASC's) are not eligible for any of the special VAT reliefs provide to charities. As regards taxable supplies there are two reliefs which are commonly used; one for club membership fees and subscriptions (this is available to all non-profit making clubs see Section 5 above) and exemption for one off fund raising events. The latter events would include fetes, fairs, jumble sales, dances, dinners and barbeques which come within the special rules for such events and where the profits are used to support the club (see HMRC guidance for Fundraising Events for further information). As regards input VAT on expenditure it is possible for charities to avoid VAT on the construction costs of a new building using the "village hall "relief provisions. If available this would avoid the almost inevitable VAT cost under the partial exemption rules since VAT will not be charged in the first place. To qualify for this relief the building must be in use for social or recreational purposes in a similar way to a village hall and must meet other criteria. This relief is not easy to obtain in practice since HMRC reject many applications for the relief applying strict eligibility criteria. Other reliefs on purchases are zero rating of certain advertising costs and a lower 5% rate on fuel and power used for non- business activities. All of these reliefs are quite technical in nature and if the potential savings are worthwhile clubs should consider taking specialist advice to maximise the benefits they could deliver. 11. Compliance and record keeping Records should be maintained in sufficient detail to ensure that HMRC can check VAT returns when they inspect them. All invoices issued and received should be kept in support of the Input and Output tax entries on the returns. Invoices issued by the club should contain certain standardised information. Credit notes must generally contain full details of the original invoice. Unless otherwise agreed by HMRC records should generally be retained for 6 years in their original form. Registered businesses generally have to submit VAT returns and payments on a quarterly basis to HMRC electronically. Virtually all VAT returns are filed online. The VAT return and any payment due must be received by HMRC within one calendar month and seven days following the end of the return period. After VAT registration the club must register with HMRC's online service. Clubs must do this via the Government Gateway (the centralised registration service for e-government). Details of how to register can be found on the Gov.uk website (see Section 3 above) Simplified accounting schemes for small businesses including cash accounting, flat rate, cash and annual accounting tend not to be used by sports clubs. Page 8 of 13

9 Since VAT has to be accounted for on invoices issued, relief is provided for bad debts written off in the club's accounts. There is however a six month delay. Clubs should take care to comply with the record keeping, return filing and payment requirements since otherwise penalties and interest may be due. There are penalties for late registration, late returns or payments and errors in returns. It is possible to appeal against these if the club has a reasonable excuse; if for example something was not done due to illness or death. In addition interest may be charged to/paid to the club where tax is under paid or over paid. Where small errors have been made they can be corrected on the current VAT return; in larger cases they have to be notified to HMRC in writing. Voluntary disclosure in this way may mitigate any penalties that will be due. Interest will however apply. A four year time limit applies to such voluntary disclosure. HMRC have the power to raise assessments where returns have not been submitted or are incomplete or incorrect. These are generally capped to 4 years from the end of the VAT period to which the assessment refers. 12. Summary Dealing with VAT is not a straightforward matter for clubs; VAT is no longer the "simple tax" which it was when introduced. Close attention to planning for VAT and VAT compliance is worthwhile. This guidance highlights the most important issues to be considered but in many situations clubs will need to refer to HMRC's detailed guidance and where appropriate, seek advice from a VAT specialist. Useful sources of information HMRC Notices and Information sheets: Notice 701/1 Charities Notice 701/5 Clubs and associations Notice 701/45 Sport Notice 706 Partial exemption Notice 742 Land and property Notice 742A Opting to tax land and buildings VAT Information sheet 01/15 Supplies of sporting services to non-members Page 9 of 13

10 Annex- VAT on different types of income 1. Advertising revenue The letting of an advertising hoarding at the club's facilities is exempt from VAT. However, it is possible to opt to charge VAT on exempt lettings. This taxation option is covered in more detail below (paragraph 17). Advertising on a notice board or wall display is always standard rated as is advertising space provided in programmes, magazines and posters. 2. Bar sales Alcoholic beverages, soft drinks, tobacco, crisps and nuts are all standard rated and if the club sells sandwiches or other food at the bar to be eaten on the premises or at the club's facilities these will also be standard rated. No VAT is due on tips for the staff when these are at the discretion of customers. 3. Coaching and course fees The provision of coaching to members by an eligible body (see membership subscriptions and related fees below) is exempt. 4. Competition fees Other income received from entrance in a sporting competition is standard rated unless all the competition fees are returned to the entrants as prizes (money goods or trophies) in which case the income is exempt from VAT. It is necessary to be careful as this may not be the case if the entrant is given free use of a facility for which there is normally a charge. 5. Donations and grants When an individual or a business gives a grant, donation or award the club does not have to declare VAT on the income if it is freely given and the person donating it receives no benefit in return. The income is outside the scope of VAT. A one line credit in a programme would not qualify as a benefit; however if the donor receives other publicity or advertising in return VAT should be declared on the income (see paragraph 16 Sponsorship). Grants from bodies such as Sport England and UK Sport are normally outside the scope of VAT provided the grantor receives nothing in return other than perhaps an acknowledgement for making the grant. Donations and grants are usually outside the scope of VAT even if the person making the donation or grant has a nominal say in the way that the money is spent. 6. Fund raising events Income from fund raising events e.g. admission charges sales of goods etc. is normally subject to VAT. Exemption may be available for charities and other non- profit making organisations (see paragraph 12) where the event is primarily for the purpose of raising funds (not social events) and the funds are used for the benefit of the club. Events which may qualify for exemption include balls, dinner dances, fetes, jumble sales etc. Page 10 of 13

11 7. Gaming and Amusement machines The takings from gaming machines or games of skill have been treated as standard rated. From 1st February 2013 Machine Games Duty was introduced in relation to Machine Games providing cash prizes. They are now exempt from VAT. Takings from games of chance (e.g. pool betting) are exempt. A license is needed to operate certain machines and clubs should seek guidance from the local HMRC office or their professional adviser. 8. Spectator charges and royalties Spectator fees and charges are standard rated. Royalty income received from a UK based television company for broadcasting from the club's facilities is standard rated. 9. Interest and insurance commission If earned, income received from money deposited with banks or building societies is exempt from VAT as are insurance or affinity card commissions received. However in a club interest is usually classed as "incidental" which means it can be excluded from any partial exemption calculation. 10. Letting of rooms and provision of catering Charges for letting a room for a meeting, seminar or conference are exempt from VAT. However if catering services are also supplied the catering element should be separately identified on the invoice and VAT charged on it. It is possible to opt to charge VAT on lettings and this is covered in paragraph 17 below. The letting of facilities for playing sport is subject to a compulsory VAT charge. The letting will only be exempt from VAT if- *the let is over 24 hours, or *there is a series of 10 lets to a school, club, association or organisation representing affiliated clubs or constituent associations (and certain other conditions are met); and * The club has not opted to charge VAT. The provision of meals (hot or cold and including drinks) for consumption on the club premises to club visitors is always standard rated. Cold take away food is zero rated; this does not apply where it is consumed on club premises. 11. Lotteries Charges to take part in lotteries and raffles or games where prizes are awarded by chance and no element of skill is required by participants are exempt from VAT. 12. Membership subscriptions and related fees Membership subscriptions are standard rated unless they are within the exemption for sporting and physical recreation services supplied by eligible bodies. Broadly an eligible body is non-profit making (i.e. non income distributing) with a constitution which has a non- Page 11 of 13

12 distribution clause or limits any distribution of profits or surpluses to its members on a winding up or to another non-profit making club. The exemption only applies to those services closely linked with, and essential to, sport and recreation. Hence it would apply to playing membership subscriptions, joining fees and match fees but not social or non-playing membership subscriptions. From 1st January 2015 exemption was extended to supplies to non-members of eligible sports clubs. Details can be found in HMRC VAT Notice 710/45 "Sport". 13. Programmes e.g. for competitions Programmes are zero rated when the portion for completion of results etc. is no more than 25% of the total area otherwise they are standard rated. 14. Sales of assets Proceeds from the sale of club assets, such as a club owned boat or generator are normally standard rated. 15. Shop sales Sales of sports equipment, clothing, souvenirs, hot food, sweets and soft drinks are all standard rated but books, newspapers, children's clothing (including kit) and cold take away food are zero rated provided the food is not consumed in the club's premises where it was bought. If the club sells both standard and zero rated goods clubs should record the sales separately as it only needs to declare VAT on the standard rated sales. Where the volume of sales means that a detailed record is unworkable the club should consult with its local VAT office or professional adviser as to how to calculate the VAT due. A club may introduce a retail scheme to establish the VAT liability to HMRC on retail sales from its shop. Whilst retail schemes are simplifications for VAT accounting purposes they can, in some circumstances, potentially achieve VAT savings or cash flow benefits. 16. Sponsorship Sponsorship is standard rated income for VAT purposes when it is received in return for a supply (e.g. advertising in a programme). Often a club will agree to wear a product name on members clothing or feature publicity in a sporting programme for a business or products. To decide if income is sponsorship income a club should consider if a supply or benefit is given in return. VAT will also be due if someone gives the club goods or services (e.g. clothing or equipment) in return for advertising or other benefits. If a sponsorship package contains a number of separate supplies (tickets, meals and drink, advertising boards etc.) it is possible that VAT will not be due on the total value. For example an advertising board can be exempt subject to the option to tax (see paragraph 17). This will benefit those customers that cannot recover all of the VAT the club charges i.e. those that receive the package for business entertainment and those which are partly Page 12 of 13

13 exempt. Since such customers will only pay the club a total sum inclusive of VAT the club may benefit from carefully reviewing what is provided to see whether any elements are eligible for VAT reliefs. In all cases it is worth analysing the various elements of the sponsorship package to determine the correct treatment. If the sponsors are VAT registered the club will be required to issue a tax invoice identifying the VAT being charged so that the sponsor can reclaim this from HMRC where applicable. 17. Taxation option for land and buildings It is possible to opt to charge VAT on land and commercial lettings which would otherwise be exempt from VAT by exercising the "option to tax". It should be noted that this cannot be used in respect of residential/domestic accommodation or accommodation which is used by a charity for "non-business" purposes. The advantage of opting to tax is that if the income is standard rated rather than exempt, VAT on connected costs can be recovered. However once the option to tax has been taken up it is irrevocable for 20 years and must apply to all future lettings or sales of part or the whole of the property. Professional advice should be taken before opting to tax since the rules are complex. To opt to tax the club should notify The National Option to Tax Unit in writing. If the club has already made VAT exempt supplies in respect of the property it will need to seek permission from HMRC. Where a club opts to tax its facilities the option will cover the clubhouse and immediately surrounding land. Therefore a bar or shop franchise within the perimeter will also be subject to the option. 18. Vending machines Vending machine sales of items such as hot drinks, soft drinks, sweets and crisps etc. are standard rated. If payment is received from a vending machine owner (either a fixed amount or share of profits) in return for allowing the owner to site the machine on the club premises that income will be standard rated. For more information kindly contact the RYA Legal Team on or legal@rya.org.uk RYA Responsibility Statement: The RYA Legal Team provides generic legal advice for RYA members, affiliated clubs and Recognised Training Centres. The information contained in this Guidance represents the RYA s interpretation of the law as at the date of this edition. The RYA takes all reasonable care to ensure that the information contained in this Guidance is accurate and that any opinions, interpretations and guidance expressed have been carefully considered in the context in which they are expressed. However, before taking any action based on the contents of this Guidance, readers are advised to confirm the up to date position and to take appropriate professional advice specific to their individual circumstances. Page 13 of 13