Commentary

V7.236A Capital goods scheme—non-business use included since 1 January 2011

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.236A Capital goods scheme—non-business use included since 1 January 2011

Part V7 Tax planning | Commentary

V7.236A Capital goods scheme—non-business use included since 1 January 2011

Since 1 January 2011, recovery of input tax for certain assets has been limited to the extent to which the asset is used for business purposes. In effect, this means that the Lennartz mechanism (full input tax recovery at the time when an asset is purchased, with output tax declared over the lift of the asset to reflect non-business or private use) was withdrawn for the following assets where there was some non-business or private use:

  1.  

    •     land and property

  2.  

    •     ships, boats or other vessels

  3.  

    •     aircraft

The change applies

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