[F1360U Additional VAT liabilities and initial allowances U.K.
(1)This section applies if—
(a)a person was entitled to an initial allowance under this Part in respect of qualifying expenditure on a qualifying building,
(b) that person incurs an additional VAT liability in respect of that expenditure, and
(c) the additional VAT liability is incurred at a time when the qualifying building is, or is about to be, qualifying business premises.
(2) If this section applies, the person entitled to the relevant interest is entitled to an initial allowance on the amount of the additional VAT liability.
(3) The amount of the initial allowance is 100% of the amount of the additional VAT liability.
(4)A person claiming an initial allowance under this section may require the allowance to be reduced to a specified amount.
(5) The allowance is made for the chargeable period in which the additional VAT liability accrues. ]
Textual Amendments
F1Pt. 3A inserted (11.4.2007 with effect in accordance with s. 92 of the amending Act) by Finance Act 2005 (c. 7), Sch. 6 para. 1; S.I. 2007/949, art. 2