C1Part 3 Industrial buildings allowances
Chapter 10 Additional VAT liabilities and rebates
Additional VAT rebates
350 Additional VAT rebates and balancing adjustments
1
If an additional VAT rebate is made in respect of qualifying expenditure to the person entitled to the relevant interest in relation to that qualifying expenditure—
a
the making of the rebate is a balancing event for the purposes of this Part, but
b
the making of balancing adjustments as a result of the event is subject to subsections (2) and (3).
2
No balancing allowance is to be made as a result of the event.
3
A balancing charge is not to be made as a result of the event unless—
a
the amount of the additional VAT rebate is more than the amount of the residue of qualifying expenditure immediately before the time when the rebate accrues, or
b
there is no such residue.
4
The amount of the balancing charge is—
a
the amount of the difference, or
b
the amount of the rebate (if there is no residue).
5
If a balancing charge is made under this section, the starting expenditure is reduced by the amount of that charge in a case where section 322(2) applies (person subject to balancing adjustment is the person who incurred the qualifying expenditure).
Pt. 3 (ss. 271-360) modified (prosp.) by Proceeds of Crime Act 2002 (c. 29), ss. 448, 458(1), Sch. 10 paras. 18, 21