SEARCH, INDEX, UPDATES, CONTENTS, SERVICES, VAT RETURNS, CAPITAL GOODS SCHEME
See also VAT Planning, VAT Flat Rate Scheme, VAT Returns, VAT Bad Debt Relief, VAT Car Fuel Scale Charge, VAT Cars including Leased Cars, VAT Partial Exemption, VAT Registration Numbers, VAT Retail Schemes
The VAT Capital Goods Scheme came into force from 1 April 1990. Prior to the introduction of the scheme recovery of input VAT on all capital goods was usually determined once and for all by the first use of the goods.
If the scheme applies, it is necessary to adjust the input tax recovery at specified review periods.
Computers
The scheme applies to computers and individual items of computer hardware costing £50,000 or more per unit. It does not apply to computers a business manufactures or buys and resells, or to computer software. It is therefore unusual for a small business to be affected by these rules as applied to computers.
Land and buildings
The scheme also applies to the acquisition of land and buildings costing £250,000 or more, either by purchase, self supply, or work done by the owner which increases the floor space by more than 10% and costs more than £250,000.
Reminder - disclaimer applies. Please feedback your comments. This page was last modified 29 June 2002.