Commentary

V7.238 Capital goods scheme—sale of capital items during the adjustment period

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.238 Capital goods scheme—sale of capital items during the adjustment period

Part V7 Tax planning | Commentary

V7.238 Capital goods scheme—sale of capital items during the adjustment period

The circumstances at Example 3 above assume that the asset in question is owned for the full five-year period relevant to the capital goods scheme for computer equipment costing more than £50,000. However, it is possible that the item could be sold before the five-year period has expired (ten years for buildings).

HMRC is often suspicious that complex VAT avoidance schemes could result in an unfair recovery of input tax. Anti-avoidance legislation is therefore in place through what is known as a 'disposal test'.

The basic rules for dealing with the

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