Commentary

BB/27D/03 VAT—partial exemption: Special Method Override Notice

Part V16 Forms and other HMRC material

BB/27D/03 VAT—partial exemption: Special Method Override Notice

BB/27D/03 VAT—partial exemption: Special Method Override Notice

Business Brief, Iissue 27. 10 December 2003

This Business Brief article describes the effect of the Special Method Override Notice announced in today's pre-Budget report and which comes into force from 1 January 2004.

Summary

The Special Method Override Notice (Notice) only affects partly exempt businesses that operate a partial exemption special method and where Customs have—

  1.  

    —     served a Notice on the business; or,

  2.  

    —     approved a Notice served by the business.

A Notice allows Customs or business to correct the results of an unfair special method until a replacement method is implemented.

No other businesses are affected by this measure.

Background

A business that makes both taxable and exempt supplies is known as partly exempt and must apply a partial exemption method to calculate how much of the VAT it incurs on its costs and purchases it can deduct. A

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial