HMRC consultation on Partial Exemption and Capital Goods Scheme

Newsletter issue - August 2019.

At Spring Statement 2019, the government announced that it would launch a call for evidence exploring ways to improve the operation of Partial Exemption (PE) and the Capital Goods Scheme (CGS), following the findings of the 2017 Office of Tax Simplification (OTS) VAT review.

HMRC have now published the consultation document covering both subjects. These are two areas of VAT which can involve a significant amount of administration for businesses, with complex calculations often being required for some businesses to determine the amount of input tax that they are entitled to recover.

The call for evidence is split into three sections:

  • the first section looks at the process for applying Partial Exemption Special Methods (PESMs) and the possible ways in which this might be improved to reduce burdens for taxpayers and HMRC alike;
  • the second section explores how the current PE de minimis limit could be changed to aid simplification; and
  • the third section considers possible policy solutions to issues caused by the CGS.

The consultation will run until 26 September 2019, with further announcements on proposals for future changes expected in time for the Autumn 2019 Budget.

The consultation document can be found here.

If you have a question
and you'd like a callback from one of our
specialists, simply access and fill in our callback
form and we'll get back to you.Request Callback

What we say is what you pay.
We understand that your finances are important.
Get the best advice for you and your business at a
fixed price for agreed services.Get a Fixed Quote

We believe you should be in charge
of your money, and here at Accapita
we'll show you how to reduce your tax
liablities and make more profit.Find out how to Make more, Keep more and Work less

Choose the icon that best describes your situation and see how our tailored advice can help you.

  • Start Up

    Start Up

  • Established Business

    Established Business

  • Specialist Areas

    Specialist Areas