C2

C1C3C4C5C6C7Part 3 Industrial buildings allowances

Annotations:
Modifications etc. (not altering text)
C1

Pt. 3 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 18 (with Sch. 10 para. 21); S.I. 2003/120, art. 2, Sch. (with arts. 34) (as amended (20.2.2003) by S.I. 2003/333, art. 14)

C7

Pt. 3 restricted (19.7.2007) by Finance Act 2007 (c. 11), s. 36(1)-(3), (7)

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).