51-215 Adjustments to the partial exemption calculation
The capital goods scheme in Value Added Tax Regulations 1995 (SI 1995/2518), reg. 112–116 (¶19-800) does not apply to items used for non-business purposes. However, it is still necessary to recognise that capital items are used over a period of time. Thus, HMRC introduced a modified capital goods scheme for local authorities and rules for adjustment of input tax on change of intention.