Commentary

V7.361 Partial exemption special methods likely to be refused by HMRC

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.361 Partial exemption special methods likely to be refused by HMRC

Part V7 Tax planning | Commentary

V7.361 Partial exemption special methods likely to be refused by HMRC

One of the main reasons why an application for a special method based on floor area can sometimes be rejected by HMRC is if it considers that the method proposed ignores a large part of the building because it is not wholly used for either taxable or exempt activities – in other words, a majority of the building is used for general purposes and is taken out of the proposed calculation.

This can mean that a business could propose a special method where, say, only 10% of the actual floor

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