Commentary

RCB/47/10 VAT — secondary legislation to implement the VAT Technical Directive, the VAT rate increase and other miscellaneous changes

Part V16 Forms and other HMRC material

RCB/47/10 VAT — secondary legislation to implement the VAT Technical Directive, the VAT rate increase and other miscellaneous changes

RCB/47/10 VAT — secondary legislation to implement the VAT Technical Directive, the VAT rate increase and other miscellaneous changes

Revenue & Customs Brief, Issue 47. 2 November 2010

Introduction

Budget Note 42 (22 June 2010) detailed the introduction of legislation to implement changes to the recovery of VAT for immoveable property, boats and aircraft to implement the EU VAT Technical Directive (Council Directive 2009/162/EU). As announced, the Capital Goods Scheme rules will be amended to allow for an adjustment mechanism, as required by the new EU VAT law.

The purpose of this Brief is to expose the draft legislation amending the VAT Regulations for a period of four weeks, to invite comments on it and to provide an explanation of the changes.

Alongside these amendments, HMRC intends to make other changes that are intended to simplify or update the current rules for the Capital Goods Scheme (CGS). HMRC will also regularise an existing Extra Statutory Concession linked to the option to tax and reaffirm an area of policy that has been the subject of litigation. There will also be

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