BB/18C/96 Recovery of tax incurred on repairs, maintenance, renovation etc to farmhouses
Business Brief, Issue 18. 27 August 1996
Following a number of VAT tribunal decisions, Customs and Excise have reviewed their approach to input tax claims made by sole proprietors and partnerships in relation to farmhouses. The following sets out guidelines which have been agreed with the National Farmers Union.
However, it must be pointed out that this does not give an automatic entitlement to recover an amount of tax. Businesses should continue to consider their own particular circumstances, and use the guidelines below to assess the proportion of tax that is claimable.
In the case of a normal working farm where the VAT registered person is actively engaged in running it, 70 per cent of tax incurred on repairs, maintenance and renovations, may be recovered as input tax. This position is in line with that adopted by VAT tribunals who have found that