pre-registration expenses on joining a VAT group

[Nonimous]

Company A is not VAT registered as its supplies are mostly exempt, but it does own an asset (not in the Capital Goods Scheme) on which it paid VAT

Company B is its 100% subsidiary, is VAT registered and makes taxable supplies, and could use the asset in its business.

Would they be able to get the VAT back on the asset if they joined a VAT group together? Obviously this group will be partially exempt, but we could do some calcs to see if it was worth it if there is no actual anti-avoidance.

[les35]

The combination of pre-reg input tax & group reg & partial exemption is not well provided for in HMRC guidance! But reg 111(1)(b) does refer to supplies made to a limited company prior to registration.
In principle, a claim should be made using the Group's Pt/Ex (and CGS) calculation.