Capital goods scheme
Accounting checklist
Actual and deemed disposal
Adjustments, declaration
Capital item sold without ever having been used
De-registration a deemed disposal
Disposal by two transactions: one exempt and one standard-rated
Disposal test
Final adjustment
Final repayment adjustment capped
Grant or assignment of tenancy or lease
Loss, destruction or expiring leases
Sale of capital item: new adjustment period begins for purchaser
Temporary non-use of capital item
Adjusting input tax
Computation
Declaration
Four-year cap
Generally
Land and buildings
Local authorities
Adjustment
Decrease in making taxable supplies in respect of leaseback transaction
Fair and reasonable, option to tax land
Generally
Input tax incurred after initial interval
Adjustment period
Application, measures
Generally
Initial interval
Intervals
Number of intervals
Refraining from applying provisions
Services
Special circumstances affecting length of interval
Subsequent intervals
Aircraft, ships, boats and other vessels
Applicable items
Ascertainment of taxable use
Buildings and land
£250,000 limit
Acquisition partly for non-business purpose
Building in course of construction is building
Estimated amounts
Generally
Input tax adjustment
Phased refurbishment
Residential property developments
Short leases
Summary
Those affected
Transfer of business as a going concern
Types of supply
VAT groups
Calculation of deductible proportion
Capital allowances
Capital goods and equipment, meaning
Capping
Cessation of supplies: non-payment of rent due under leaseback
CGS may not claw back over-recovered VAT
Changes between business and non-business use
Changes between taxable and exempt business use
Checklist
Civil engineering works
Computer equipment
£50,000 limit (excluding VAT)
Excluded items
Generally
Item-by-item basis
De-registration, final adjustment
Disposal within adjustment period
European approach
Four-year cap for adjustments
Change in use
Declaration
General provision
Generally
Inapplicability
Purchase by public body
Purchase by way of exempt or zero-rated supply
Input tax affected by
Input tax incurred before or after initial interval
Interaction with capital allowances for direct tax
Interpretation
Items held as trading stock
Items obtained and disposed of without use
Land and buildings
£250,000 limit
Acquisition partly for non-business purpose
Building in course of construction is building
Buildings acquired partly for non-business purpose
Estimated amounts
Former developer's self-supply
Generally
Input tax adjustment
Phased refurbishment
Residential property developments
Short leases
Summary
Those affected
Transfer of business as a going concern
Types of supply
VAT groups
Leasing
Generally
Lease or buy
Lost/stolen or destroyed items
Mandatory
Meaning
Meaning of capital goods
Demonstrator cars
Sale of cars
Method of adjustment
No claim for goods caught
Partial exemption
Generally
Interaction
Standard method override
Period and manner of adjustment
Period of adjustment
Public authority purchasing capital goods, taxable person
Purchaser not liable for clawback of seller's input tax
Re-registration
Records
Registration
Relevant amount of capital expenditure
Self-supply, groups of companies
Taxable use
Calculation, other methods
Change of use during an interval
Generally
Incorrect claims in initial interval
Quantifying
Transfer of business as going concern
Use and first use
Zero-rated premiums
Transfer of activities
Transfer of business as going concern
Adjustments by transferee
Adjustments declaration
Final adjustment by transferee
Generally
Transfer of registration number
Transfer stops an interval
VAT groups, no self-supply
Value added tax
Value of items
Generally
Refurbishment or fitting out work, alternate method
VAT groups
Accommodation a capital item
Adjustments, declaration
Changes to intervals
Generally
Joining stops an interval
Land and buildings
Registration
Transfer of going concern
