Commentary

V7.240 Capital goods scheme—planning points to consider

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.240 Capital goods scheme—planning points to consider

Part V7 Tax planning | Commentary

V7.240 Capital goods scheme—planning points to consider

The following planning points should be given consideration.

  1.  

    •     It is important that tax advisers do not see the capital goods scheme as a threat – by recommending to clients that they deliberately try to keep projected capital expenditure below the £50,000 and £250,000 limits. In the case of a partly exempt business that expects to increase its level of taxable activities in the future, any expenditure on assets relevant to taxable and exempt supplies will actually produce a tax advantage by being within the scheme.

  2.  

    •     Remember, the key aim of the capital goods scheme is 'fairness' – so if the final calculations indicate

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