Fabian Barth explains which VAT treatment applies to the most common types of transfers of beneficial proprietary interests.
English law, for historical reasons, distinguishes between two types of ownership: legal and beneficial. The latter type is of particular relevance in the context of land and certain financial instruments, but can apply in principle to anything that is capable of being owned.
If a business transfers a beneficial interest, the question arises: which VAT treatment applies?
Beneficial interest in tangible movable property
Normally, where tangible movable property is sold (i.e., full title therein is transferred), the seller effects a supply of goods, and the VAT treatment follows accordingly. However, the transfer of the full legal title is not a necessary condition for making a supply of goods. The test is a different one. In the
