Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Asset challenges

24 April 2012 / Neil Warren
Issue: 4350 / Categories: Comment & Analysis , VAT
NEIL WARREN considers the options available to a business that buys assets not wholly used for business purposes

KEY POINTS

  • Input tax apportionment.
  • Lennartz mechanism.
  • Output tax adjustment.
  • Fair and sensible result.

There are times in the world of tax when we suddenly identify a topic where our knowledge is not as hot as it should be … well I do anyway.

I recently found myself mentally muddying the waters over the input tax issues that apply when a business buys assets that are partly used for business purposes and partly for ‘other’ purposes i.e. non-business or private use.

In such times my strategy is to create a number of practical examples on a blank sheet of paper that include the areas I am confused about and work through them with the help of the legislation and HMRC guidance.

I persist with this approach until things are as clear...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon