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HMRC has opened a consultation on improving the operation of the partial exemption and the capital goods scheme. It follows the Office of Tax Simplification’s 2017 VAT review which suggested HMRC should simplify the partial exemption regime. It also identified issues with the capital goods scheme regime, highlighting that the time and administration required could sometimes be significant to result only in a relatively small adjustment.
The government is therefore calling on businesses to share their views on:
- how the burden could be reduced for taxpayers and HMRC alike;
- whether the partial exemption de minimis limit should be changed; and
- possible policy solutions to problems caused by the capital good scheme.
Submissions should be emailed to operation.ofPE@hmrc.gsi.gov.uk by 26 September.
