Commentary

C2.210 Value added tax

Capital gains tax
Capital gains tax | Commentary

C2.210 Value added tax

Capital gains tax | Commentary

C2.210 Value added tax

If VAT has been suffered on the purchase of an asset but is available for set off on the purchaser's VAT account, the cost of the asset for capital gains tax purposes is the cost exclusive of VAT. Where no VAT set off is available the cost is inclusive of the VAT borne1.

For the treatment of VAT on the disposal of an asset and HMRC practice in relation to those whose output is partly exempt and partly taxable, see C2.104.

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