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Option to tax
In the 2003 Budget the Government published a consultation document entitled 'VAT: Making input tax recovery fairer'. This sought views on a package of measures to reform some of the regulations on the recovery of VAT incurred by businesses. Although there was some support for what the package was trying to achieve subsequent analysis suggested that it could have resulted in a net cost for many small businesses. Consequently the Government will not be taking forward the package.
Customs are however making a minor change to the automatic permission conditions for opting to tax land and buildings. The change will benefit public bodies (mainly local authorities) who will now be able to ignore VAT refundable under VAT Act 1994 s 33(2)(b) when determining whether the terms of condition 2 of the conditions set out in para 5.2 of VAT...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
